Gland Pharma Limited (NSE: GLAND) Q1 2026 Earnings Call dated Aug. 05, 2025
Corporate Participants:
Unidentified Speaker
Srinivas Sadu — EXECUTIVE CHAIRMAN
Shyamakant Giri — Chief Executive Officer
Alain Kirchmeyer
Ravi Mitra — Chief Financial Officer
Analysts:
Unidentified Participant
Runjhun Jain — Analyst
Saion Mukherjee — Analyst
Neha Manpuria — Analyst
Motilal Oswal — Analyst
Nitin Agrawal — Analyst
Abdulkader Puranwala — Analyst
Dheeresh Pathak — Analyst
Rahul Jewani — Analyst
Harsh Bhatia — Analyst
Ankush Mahajan — Analyst
Dhawal Khut — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Glant Pharma Limited Q1FY26 earnings conference call. As a reminder, all participant clients will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Ranjan Jain. Thank you. And over to you, ma’.
Runjhun Jain — Analyst
Am. Thank you, Padu. Good evening everyone. Today we have Mr. Srinivas Padu, Executive Chairman, Mr. Shamkam Giri Khalil, Mr. Ravi Mitra, Chief Financial Officer from India Office and Mr. Anand, CEO of Synapsy. Both connected virtually. Before we proceed, I would like to remind everyone that certain statements made today are forward looking and based on management’s current estimates, these should be considered in the context of risk inherent to our business. Please note that this call is being recorded and a playback transcript will be available on our website shortly. With that, I hand over the call to Mr.
Sadhu for his opening remarks. Over to you, sir.
Srinivas Sadu — EXECUTIVE CHAIRMAN
Thank you, Ranjan. Good evening everyone and thank you for joining us today. On behalf of GlantPharma, I welcome you to our earnings call for the first quarter of FY26. I will begin by highlighting our strategic priorities and the progress we are making. Shama, Kanda, Alain and Ravi will then provide operational insights that led to the performance we are reporting today. The year has begun on a positive note driven by improved profitability margins in grand based business. It is particularly encouraging that after a challenging period, Synxia has turned a corner and returned to profitability with a breakeven Navisa.
The length of this and broader pharmaceutical space continues to evolve, presenting both challenges and strong opportunities despite ongoing uncertainties around Paris. Our established capabilities and disciplined approach position us well to navigate and respond effectively. This quarter’s performance reinforces our confidence that the strategic building blocks we have put in place are starting to yield results and positive financial outcomes. Let me now update you on the progress we are making on each of our key strategic priorities. We are advancing the expansion of our core business beyond the US by deepening our presence in emerging markets. All the contributions from these markets will take time to build.
We believe the distinct value of our portfolio will serve as a key growth catalyst over the medium term. Moving forward, our focus remains on capacity enhancement and strengthening our industry leading capability. Land has historically led the way in adopting innovative technologies and formats for injectables consistently offering competitive large scale solutions. Our current capacity enhancements now input capabilities for suspensions, hormonal products, microsphere, bulk microsphere, powder filling. We’re also making strategic push into RTU formats such as dual and triple chamber bag. We continue to make significant progress in our CDMO program, particularly in key areas like oncology, RTU bags, ophthalmics, CFS and GMT 1s.
These advanced capabilities give us a unique position in the industry and we are committed to leading with innovative initiatives. Our GLP1 strategy gained momentum last quarter with the launch of Nevada. The product has now. The product has now also been launched in the UK and Australian market. We are excited about other programs that will benefit from our expanded pen and cartridge capacity which were aggressively increasing from 40 million units to over 140 million units with the factory acceptance test scheduled to be completed by September 25th. Turning to our R and D and portfolio expansion initiatives, our strategy is anchored on three core pillars in house research, complex products and core collaborations in house.
R and D continues to be a strong driver with nine approved alongside 1761 global registration in the quarter. During Q1 FY26 we launched nine new products in the US and are confident of sustaining this momentum. We also filed one RTU institution bag this quarter which brings our total to 20 such products filed in the US of which 14 are already approved. An additional 10 RTO backed products are currently under development. This RTU bag portfolio addresses a market opportunity of approximately 750 million in the US in the area of complex injectables. We have already launched six products with three more in line for approval.
We expect complex injectables to remain a central pillar of our long term growth with more products being added to the pipeline. Epinaw Co Development Model Our Portfolio now comprises 15 products including seven 505 B2 submissions and eight ANDAs. These products are strategically aligned to high potential therapeutic areas such as immunology, chemo adjuvants, mineral supplements, pain management, endocrinology and radio contrast agents on senexc. We have addressed the challenges head on and have kept you closely informed on the steady progress of our turnaround plan. I’m pleased to report that as of Q1 FY26, Senexc has turned EBITDA breakeven and we are confident of continued improvement.
While it has taken slightly longer than anticipated to fully achieve our acquisition objectives, Synaxe is now firmly on the path to sustainable growth and profitability. This momentum is being driven by strategic shifts away from low value high volume segments towards high value offerings such as vehicle syringes, license wires and uplamic jail environment. In conclusion, we believe this has been a strong start and we look forward to building on this momentum to deliver an even stronger performance to FY20. We are confident that the actions underway across our strategic pillars will create a meaningful positive impact supporting land’s long term success and sustainability.
Thank you for your continued confidence in land. With this I will now hand the call to our CEO Mr. Shamaka to share his thoughts. Thank you.
Shyamakant Giri — Chief Executive Officer
Thank you Mr. Sadhu Good evening everyone. Thank you for joining today. We have had a strong start to the year. Glance based business met expectation and we are pleased that NXC achieved break even the data after several courts. First I will highlight our consolidated performance. Our consolidated revenue stood at INR 15,056 million showing a growth of 7% over last year’s quarter one. Our consolidated EBITDA touched INR 3,678 million marking a strong 39% increase year over year. A substantial portion of this growth was driven by EBITDA expansion in our base business complemented by breakeven and data from SENEFC with significant turnaround.
Consequently, our consolidated ABOVE margin grew from 19% to 24% this quarter. Next I will outline the performance of our base business and plant excluding senexy. Breaking down our performance by market we had a strong quarter in the US with successful launch of nine new molecules during quarter one FY26. This include important products like epinephrine, acetaminophen bags and three new strains of vancomycin. The US reported INR 7,443 million in revenues contributing to 49% of our business. Our other regulated markets including Europe, Canada, Australia and New Zealand showed good growth increasing 34% year on year. Led by portfolio maximization initiatives across our partners.
These markets now make up significant 25% of our total revenue. The rest of the world market contributed to INR29.78 million in quarter one FY26 representing 20% of our revenue. We saw a modest 5% increase in this market largely due to a softer order intake in some key regions. Lastly, the Indian market generated INR 594 million accounting for 4% of our quarter one FY26 revenue. Moving on to the R and D, our total expenditure for quarter one FY26 was INR 460 million which is 4.4% of our base business revenue. During the quarter we filed one product and received nine new approvals.
R and D remains a cornerstone of Our strategy and we are confident that our new product portfolio will drive growth and profitability in both near and long term. On the operations front, all our units are compliant with various regulatory guidelines, maintaining a strong commitment to high quality. We also focus on monitoring our cost base to ensure our business remains highly competitive and ahead of growth. SENEXC has been the highlight of this quarter. Our strategic initiatives over recent quarters are now delivering tangible financial results. After several quarters of negative EBITDA, SYnext reached break even this quarter.
In quarter one, FY26FC revenue was 48 million Euro and gross margin improved to 80% from 78% last year. EBITDA was we are confident Cenex’s performance will continue to improve. ALLA will provide a detailed update shortly. We remain committed to announcing cenex’s financial performance and achieving our strategic objectives for this acquisition. Before concluding, I will provide a brief update on our key demand and supply priorities outlined when I became the CEO two quarters ago. We remain committed to building capabilities and expanding our global reach to drive long term value. On the demand side, our focus remains on enhancing our footprint and launching new products in high value, high growth rest of the world markets.
We are also leveraging our strength in specific therapeutic areas and actively exploring inorganic opportunities to achieve significant growth in India. In the US our primary goal is to add new customers and grow our share of business with existing partners. All of this backed by an accelerated portfolio strategy that emphasizes co development in licensing and strategic partnership in Nivo mobility. On the supply side, our priorities are focused on maintaining quality and cost leadership. We are continuously focused on competitiveness and upholding our industry leading quality and compliance. We are continuing to strengthen our leadership team with new hires and building capabilities across all functions.
With this, I would like to hand over the call to ALA for for more detail updates on Senexe’s performance. Over to you Alain.
Alain Kirchmeyer
Thank you Mr. Gehry and good evening everyone. As emphasized by Mr. Sadhu and Mr. Giri in their remarks, we are pleased to report that senexc reported a breakeven EBITDA this quarter. This achievement reflects our continuous efforts to streamline operations and optimize costs while we are still working toward our desired financial performance. This marks a strong beginning and emphasizes both our strategic intent and the progress we are making to provide a more granular perspective. Let me walk you through key updates at the site level, Production at our Fortnay facility has been on track with the plan.
We were able to improve our order shipments and reduce downtime the transfer of products to our new AMPEL Line is progressing well, thus increasing our production output. Our results this quarter also reflect the benefits of price increases negotiated last year with our customers. As we had reported, we have also concluded the required actions pertaining to the Q3 FY25 ANSN inspection. A new inspection took place in July to monitor the progress of our CAPA plan. We remain focused on streamlining operations on the site and adding further volumes. The operations at EOV St Clair have remained on track with our recovery plan and we continue to see steady progress with the ongoing tech transfer projects under development.
The installation of a new prefilled syringe line which is projected to be operational at the beginning of calendar year 2026 remains on track and will substantially increase our capacity in the high demand PFS segment, the bnf, the business from Brain Laloux and ONI remained robust and delivered a solid performance this quarter. As updated previously, our two new line utilizers are being installed at Bren Laloux and their qualifications will be concluded by the end of the calendar year 2025. In parallel, engineering studies for the installation of a new vial line under Isolator with automatic loading and unloading of the Lyophi Lizers are progressing well.
The long term prospects for this business remain robust with high value projects in our tech transfer program. Besides, our pipeline of new leads in Brain Laloux is growing fast with new projects under study in hormones, blood derivates, biologics and of course cytotoxics. Q1F1.26 has marked the beginning of a meaningful turnaround. We remain firmly focused on our previous commitments. It has to deliver a positive EBITDA in Q3FY 2026 after a to be expected low Q2FY 2026 due to our summer shutdown. Thank you for your time. I will now turn the call over to Ravi to discuss our financial performance.
Ravi, over to you.
Ravi Mitra — Chief Financial Officer
Thank you Anna, Good evening and thank you for being with us on the call today as we review our financial performance for the first quarter of the fiscal year 2026. We are pleased with the steady growth in consolidated profitability year on year driven by improvement in our gross margin which has reflected a strong positive Momentum, improving to 65% from 60% in Q1FY25. This enhancement was largely on account of higher contribution from favorable raw material cost for several key products at base business, excluding Senergy. Our base business gross margin stood at 59% in Q1 FY26, up from 53% in the same quarter of previous year.
The consolidated EBITDA margin also improved significantly reaching 24% from 19% in the corresponding period of FY25. This uplift was driven primarily by a strong gross margin and various cost control initiatives across our base business at Senexy, EBITDA Breakeven was achieved supported by higher volumes alongside stable operating expenses. Excluding Senexy, our base business delivered an ebitda margin of 35% for Q1FY26 compared to 29% in the same period last year. It is worth mentioning that the company launched ESOP 2025 scheme in May 2025 to motivate key employees and also to align with the interest of investors on esop plant of 8.43,685 options.
A non cash expense amounting to rupees 59.48 million was included in this quarter’s employee benefit cost. Adjusted for this expense, our base business adjusted EBITDA stood at Rupees 3651 million. Our net profit for the quarter reported a strong 50% year on year growth to Rs. 2001. 55 million compared to Q1FY25. During the quarter we achieved a patent margin of 14% compared to 10% in Q1FY25. Other income primarily consisting of interest earned from bank deposit and foreign exchange gains amounting to Rs. 575 million in Q1FY26. This is higher than the rupees 440 million reported in Q4FY25.
Our R&D expense for the quarter were rupees 460 million from rupees 489 million in the same period last fiscal year largely due to timing of the expenses. While all our R and D programs remain on track, this quarter’s R and D expense represents 4.4% of our revenue on an XFINXE basis. On a standalone level, the effective tax rate was 25.7% of the quarter. As of June 30, 2025. Our total cash and equivalents at the group level stood at Rs. 30,139 million including non callable deposit of Rupees 3,960 million. Debt at Senexe level stood at Rupees 3,145 million.
Cash flow from operations during Q1 FY26 was Rupees 2,620 million. Our average cash conversion cycle was 161 days from the first quarter compared to 172 days at the end of FY25, largely on account of better Receivable and table management. Total CAPEX during the quarter amounted to rupees 786 million mainly deployed in Senexc DLA for the new projects and other replacement and maintenance standards. With that, I would now like to request the moderator to open the lines for questions. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star then 1. On the other hand, if you wish to remove yourself from the question queue, you may press star then two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from the line of Sayon Mukherjee from Nomura Securities. Please go ahead.
Saion Mukherjee
Thanks. Good evening sir. Can you provide the profit share and milestone number for this quarter please?
Srinivas Sadu
Yes, the milestone revenue is about. It’s about 9% and the profit share is 12%.
Saion Mukherjee
Okay, okay. And the second question on the pen and cartridge capacity of 40 million which is available and 140 that you’re planning to go if you can share the timeline. And how much of this capacity, given the GLP1 demand do you expect to sort of come through this year in FY27 and 28? If you can sort of give some color as to how you see this capacity getting filled up.
Srinivas Sadu
So the 40 million capacity is already in place and we have already filed and that line is already approved. And as you have heard in commentary, we have launched a regard in few markets from that line. The 100 million capacity is in September and installation in November by March, I would say March, April to be ready for interfill and commercialization. There will be few contracts we are discussing with partners for that line. And anyway the Gori will come in 30, so most of the initial will be filing from that bank and then so that should be good enough for our launches post 28.
Saion Mukherjee
So how much of this? 140. So what is the amount of quantity we would be supplying? Let’s say this fiscal in 27 and 28. I know like some of this may be from a long term perspective, but given the visibility on contracts that you have in having placed now.
Srinivas Sadu
The exit start with around 20 million in the first year and then depending on which markets you get accrued. So 20 million using this fiscal fiscal 26 or 27. 27.
Saion Mukherjee
Okay, understood, thank you. And I’ll join back.
operator
Yeah, thank you. Our next question comes from the line of Neha Manpuria from Bank of America. Please go ahead.
Neha Manpuria
Yeah, thanks for taking my Question. My first question is on could you take us through a little bit on, you know, the breakeven that we’ve achieved? Is this because of certain plans where we see losses being lower and why we think this will be sustainable? And based on this, what should be the margin that you think the next we can now achieve for next year? Is a low clean margin possible or would it still be in the high?
Srinivas Sadu
You want to take this? Okay, so Neha. Yeah Ella, please go ahead.
Shyamakant Giri
Yes, so in Q2 all sites have contributed to a strong performance. Of course BLA and OMI that have had a long term positive EBITDA continued on the trend but we start to see a recovery both in Fronten and in Heroville who had been the lower performing sites in the past 12 months. That’s driven mainly by an increase of volume as well as much reduced downtime and also the result of all the actions that we have initiated in order to be more productive and more efficient.
Neha Manpuria
Alan, if I may ask, out of the three facilities, which one of them probably is the largest drag on profitability and what’s the scope to improve market?
Srinivas Sadu
So if we look at Q2. As. I mentioned, both Frontnet and Eruville have sharply increased their results. O’ Neill and Brenna Leu continue on this very positive trend. But most of the upside is coming from Frontne and Emerubille that had been underperforming in the past 12 months.
Shyamakant Giri
So Neha, just to add Pontani side, I think we were struggling to deliver the demand and then the line which have added in March that kind of helped us to catch up with some of the back orders and also increase the capacity. But that has added that Montani had brought him to and from the HSE side. Two products got launched and tis a thermic gel vaccine product release so that those projects got commercialized and the volume increased. That kind of helped HSE also to increase the revenue. So these are. And also there were actions taken by Alan in terms of increasing the transfer prices for Devel products and that also helped in increasing the profitability.
Neha Manpuria
And next, do we think Jim can now comfortably do a low teen EBITDA margin? Would that be a fair assumption given the progress we’ve seen, you know, in this quarter? Probably still too early to call that.
Shyamakant Giri
So next quarter because of the summer shutdown? Next quarter, yeah. But for the year, I think moving forward from October, I think it will be EBITDA positive and we’ll ramp it up slowly to get to the high, high, low teens or high single Digit.
Neha Manpuria
Okay, understood. And my second question is on the US business, you know, if I look at the performance in this quarter, you know, obviously there’s lumpiness one as we think about that mid teens growth that we talked about. You know, when do you start seeing improvements movement in the US business to get to that mid teens growth and what would drive you talked about the dry powder cmo. When does that start playing through? When does this complexity would actually start reflecting in the revenue numbers for us?
Srinivas Sadu
So we’re still on track for the aspen of budget. I would say we are achieving our budget in the first quarter. We are on track to get to the mid teens. The CMS project, the LAYO products just got launched last quarter and you see that, you know, you see the numbers in Europe has gone up. Basically that product which got launched, the other one, the CMS drive order the Danish approval has come for has come through line wise. Now they’ll be submitting the dossiers next quarter. So the beginning of next year those products will get launched in Europe and other markets.
So that will be a big ticket item in terms of the CDMO business. The other big thing in the US will be Albert mentioning launch. That will be the September quarter. That’s on track again in terms of the approval and launch.
Neha Manpuria
So these are the two.
Shyamakant Giri
Big events that will help this growth coming back. Otherwise everything else are in line with our internal budgets.
Neha Manpuria
Sorry sir, which was the second one you mentioned in September.
Srinivas Sadu
Did Dalva Winsin. Dalva Winsin launched.
Neha Manpuria
Okay, okay. Thank you so much.
operator
Thank you. A reminder to all the participants, if you wish to register for a question please press Star then one on your Touchstone phone. Our next question comes from the line of Tushar Manudane from Motilal Oswal Financial Services. Please go ahead.
Motilal Oswal
How much overall business across the geographies you would have made this quarter?
Shyamakant Giri
We can’t be specific but I think we launched in UK and one other in Australia. UK and Australia got launched this quarter and previous quarter again I think the two markets, right? South Africa and Saudi Arabia. Two markets. So till now it’s four markets this product got launched.
Motilal Oswal
And how many more like subsequently like in the remaining quarters of 23.
Shyamakant Giri
A global deal, I can’t say because it’s a partner product, it’s a global agreement.
Motilal Oswal
Like in the next year when the other website get the business.
Shyamakant Giri
No, it has one market, right? I mean Lira and Sana both have this.
Srinivas Sadu
No, from the capacity, manufacturing capacity.
Shyamakant Giri
No, no, we already. We have enough capacity. We have currently 40 million. And that should suffice for next few years. Because the major product will only come early 30s. Right. So we have the size the other line ready by the first quarter of next year. So that should take care of the demand. Till that time we have enough capacity.
Motilal Oswal
And I missed the name of the two you know potential products for US market which will drive sales. If you could repeat.
Shyamakant Giri
So one is Darba one thing and the other we already told it’s a CMS contract. That’s not just us, that’s also European. The second one is.
Motilal Oswal
Lastly considering QQ sort of dip in profitability for CX and then revising what kind of EBITDA margin one should think of.
Shyamakant Giri
Give us a question. Yes, similar like this quarter around 25%. You want EBITDA or.
Motilal Oswal
So Tushas MXC. We are estimating the EBITDA ramp up happening in Q3 and then Q4 also.
Shyamakant Giri
Q2 would be little lower because of. The one month semester down. So accordingly we will have the full year an X number.
Motilal Oswal
Got you. So you were indicating like full year EBIT margin of gland per se as a 24% to be consider.
Shyamakant Giri
I think combined gland and 25. 25. 25 25%. Is the current quarter consolidated.
Motilal Oswal
Thank you.
operator
Thank you. Our next question comes from the line of Binopathy Parampil from Elara Capital.
Unidentified Participant
Please go ahead. Hi, good evening. Could you please elaborate a bit on the semaglutide manufacturing opportunity for you in the near term specifically for next financial year. How big can that be? Based on your capacity, your contracts and your outlook compared to the overall size of the company. Hi Binod. So as I said, you know we are today 40 million cartridge up and running. We are completing 100 million again. So next year, you know FY27 will be one of the top tier cartridge capacity. The 140 million cartridges we also have contracts. We are talking to four types of customers.
Indian customers for global market. Indian customer for India market. Okay. And finally we are talking to also some more players for global markets. So as we are doing this exercise, we are here to sell our capacity. The capacities are being lapped up. You know it will take some time for us to tell you exact capacity being sold by end of quarter four 26. So right now we don’t have a number that how FR20 looks like. But we are being approached by many customers who want to launch their GLP1 in India and global market. Understood.
Srinivas Sadu
So did I hear it correctly that.
Motilal Oswal
The entire 140 that is the new 100 as well will be ready by the end of the the financial year by March.
Shyamakant Giri
That’s correct. 40 is already ready and another hundred by March to be commercialized. Ready for commercialization of March April.
Motilal Oswal
Understood. And I believe what you do is just the cartridge, getting the cartridge and the API and then you know, filling the cartridge with the API. That is the only activity that you do. Am I correct? It is a fill and finish CDMO line. So we are not developing our own seminar. It is a fill and finish activity that we will do. Okay. And if I may ask, the kind of contracts that you are getting, where does the API come from? Does the customer directly get the API and ask for a fill and finish or do you go to source the API as well?
Shyamakant Giri
These are all developed by partners and transferred to us. So API sourcing will be done by them and developed by them. So either it’s internally developed by the partner or the outdoor system. So we have currently agreements on Iraq and partner and more are upcoming. But most of them are, but we don’t source for them.
Unidentified Participant
Understood. And last one question. Given the so called capacity shortage in the market for semaglutide, etc etc.
Shyamakant Giri
Is this fill and finish activity going. To be of a significantly higher margin profile than the other fill and finish.
Unidentified Participant
Lines that you run? The contribution could be higher because of the volume you can produce in a batch per cartridges, but it all depends on how the market behaves. And once you come closer to launches in various markets, so we can’t really comment, but we can only comment on the contribution margins will be better than others. Because throughput you can give on a daily basis.
Shyamakant Giri
And the throughput is higher because of the nature of the cartridge or why is it. Is it because of a technical reason? We have the speed of the machine as well as the fill volume of the. So it can produce more units compared to a wireless.
Unidentified Participant
Understood. Got it. Thank you very much.
operator
Thank you. Our next question comes from the line of Nitin Agrawal from DAM Capital. Please go ahead.
Nitin Agrawal
Thanks for taking the question. Just following up on the previous questions. So on the these capacities that we have, you know, these are capacities for multi dose cartridges and pen assembly or these are largely wide filling capacities.
Shyamakant Giri
These are cartridges, these are not wire lines. This is a bulk cartridge line. Bulk cartridge line. And these lines are integrated with the pen assembly. Assembly line. Okay.
Nitin Agrawal
And so from a regulatory perspective, the next hundred million wild cartridge capacity that.
Shyamakant Giri
You’Ll pick up, that will put up.
Nitin Agrawal
What kind of regulatory approvals are you looking at? You know, for which Kind of which so a 40. These 40 million watt regulators who approve this capacity and for you to get you know incrementally approvals for the next 100 million. What kind of time frame that takes after the commissioning.
Shyamakant Giri
So this line is part of the same suite where you have other lines approved including this sterile cartridge. So the approvals will be faster especially US and Europe because the cities approved by these markets already. So it’s be easier. You have seen lira got getting launched in other markets. So this is a similar block and switch easier compared to a new line, new suite.
Nitin Agrawal
Okay, thank you so much.
operator
Thank you. Participants, you may press star N1 to ask a question. Our next question comes from the line of Abdul Kader Puranwala from ICICI Securities. Please go ahead.
Abdulkader Puranwala
Yeah. Hi. Thank you for the opportunity.
Shyamakant Giri
So for the first question with respect.
Abdulkader Puranwala
To your US market growth for the base business, any commentary would like to provide as to how the growth would revive in this particular portfolio in quarters ahead. Can you again repeat your question please?
Srinivas Sadu
Yeah. So my question is with regards to your US revenue. So it has declined at around 2% within that dance portfolio the growth has been minus 5%. So wanted to understand you know how would the shape up in the near term and when we see this, you know business, when you talk about the meeting, kind of a growth rate, how would this business growth would pan out.
Unidentified Speaker
Yeah, so I think it’s more to do with the timing. Especially in Oxa the supplies in this water was around 70 crores which is normally around 130, 140 crores. It’s more about the timing because some of the SKUs, the large SKUs are not supplied every quarter. So if you actually exclude the Inoxa supply, the volumes, the revenue growth for us is almost 11% market growth. So other than that it’s more to do with the timing issue because annual basis or inoux is still intact in terms of volume and revenue. So that’s the main reason why we show that growth.
Otherwise. Otherwise it’s in line.
Abdulkader Puranwala
Understood sir. And just one more if I may. So any update on the biologics biosimilar tie up you had with Dr. Reddy and one other customer. When should we look for commercial revenues coming from that venture?
Shyamakant Giri
That started from July 1st. It’s now been the collaboration started. The team is in place now from their side. So you see some revenue coming from this quarter onwards from the Dr. Reddy’s collaboration on the other project. Still we are working on the RFPs and commercial discussions that are happening. On the Hendi 2 projects we’re discussing with them that will take some time because there’s more tech transfer activities that will happen next year or so. But from the DRL project we’ll see some contribution coming from this quarter.
Abdulkader Puranwala
Okay. And so if you have to track this in quarters ahead. So I mean the collaboration would be for which market?
Shyamakant Giri
So this is more to do with pilot scale batches at the lab. So it’s not specific to product now market now it’s more a batch is going to clinical.
Abdulkader Puranwala
Got it. Thank you.
operator
Thank you. Our next question comes from the line of Diresh Pathak from White Oak. Please go ahead.
Dheeresh Pathak
Yeah, thank you for the opportunity. We have 140 million cartridge full finished capacity available for FY27 and you mentioned that you’re working with various category of clients. So how much utilization do you expect for the full year? FY27.
Shyamakant Giri
FY27. The utilization for the new land won’t happen because most of the market will open up later. ROW opens up few markets next year, so the utilization may not be much. But we’re also talking to not just the DLP one but also some of the other molecules to see if we can fill up capacity for next few years. But majority of the capacities will start filling up from 2930.
Dheeresh Pathak
Okay. All right. Okay.
operator
Thank you. Thank you. A reminder to all the participants, if you wish to register for a question, please press Star and one. Now our next follow up question comes from the line. Sorry, our next question comes from the line of Rahul Jiwani from IIFL securities limited. Please go ahead.
Rahul Jewani
Yeah, thanks for taking my question, sir. So you indicated that for the GLP1 products for FY27 you will be commercializing around 20 million pence and passengers. So what kind of a Filipinos pricing are you working with? So while I understand that the pricing would be dependent on how the end market dynamics play out, but some ballpark number would be helpful here.
Shyamakant Giri
Can’t really comment on the pricing because. And also we’re not dependent on the pricing because being a CDMO we have a fixed conversion cost paid for each pen. So that kind of fixed is not related to the end market. But you can’t really say how much because it depends on the contract and what pricing.
Rahul Jewani
Okay. But this 20 billion commercialization which will happen in FY27 will largely be for the RW markets and hence you will book that revenue as part of the ROW business.
Shyamakant Giri
So it’s a combination of some in several market. Like you know, even you have lira which is getting launched in certain market and likewise SEMA will also be launched in few markets.
Unidentified Speaker
Okay, sure sir. And sir, on this base business growth, while we have commented over past 3 4/4 that the base business growth should pick up to a mid teens kind of a number this quarter as well, the base business grew only 3%. So while they appreciate the fact that there was volatility related to Enoxaparen, but Enoxaparin and Heparin are our two largest products which will have this quarterly, let’s say kind of volatility. So when do you think that the base business growth actually starts accelerating or improving to this mid teens kind of a number.
Rahul Jewani
Thank you.
Shyamakant Giri
Just not these two products. The launches just mentioned about whether it’s Dalga or the CMS project that will start coming up in last two quarters. So that also gives a big jump. So on an average basis for the year we’ll hit that mid teens.
Rahul Jewani
Okay, so this mid teens is including Tennessee at an overall company level.
Shyamakant Giri
Yes.
Rahul Jewani
Oh, thank you. That’s it for my success.
Shyamakant Giri
Thank you.
operator
Thank you. Our next follow up question comes from the line of Sion Mukerjee from Nomura Securities. Please go ahead.
Saion Mukherjee
Yeah, thanks for the follow up sir. I just wanted to check on. I think you received approval for generic Vaizalta Natalie Prostein sometime back with exclusivity. I mean is that a product we expect in the near term or is it a few years out?
Shyamakant Giri
It’s a few years out depending on the based on the settlement and the patent.
Saion Mukherjee
Not in the next two years. Will that be a fair assumption to make here?
Shyamakant Giri
We may 2nd it’s FY29.
Saion Mukherjee
Okay, understood. You know you mentioned about building out in the row markets and it would take some time to build that out. So how should we think about your approach in the various row markets and what kind of ramp up what kind of scale you are looking at?
Shyamakant Giri
So Saiyan, if you see rw, we in many ways have arrested the degrowth and this quarter is a quarter of growth on a Q1Q basis, 24% on a YNY basis. What we are doing in RW is having a portfolio approach. What we have done first is classified countries of RW as Class 1, Class 2, Class 3. This is the kind of portfolio portfolio optimization customization focus that we need. Okay. Second, what we also done is we are now tracking all the registrations, some old rail stations which were actually in the past became active and having a high kind of cadence review with the partners on ground.
These are all tactical things. But strategically we are launching, we are finalizing a portfolio which will place us among one of the top tier injectable company in that country. So a lot of things happening practically and surgically, but we have reasons to believe that row business can double up over a few years from now.
Saion Mukherjee
Okay, sir, and sir, one last question if I can. I mean few years back, you know, you had mentioned about China market collaboration with Fosun and its presence in various markets. I’m just wondering, you know, what kind of involvement like Fosun has in the strategic direction for the company and the business as a whole at this point.
Unidentified Speaker
So overall, I think Osun is a good partner. We have access to Chinese ecosystem from an API sign and all of that because of Fosun, but they’re not day to day. And if I were to again comment on a particular China market question, we have four approvals, four more pending. Okay. And we do have some values that we are generating. China again is a very intimidating market. We want to really push our approval registration more in China takes a lot of time and there is an EVP overhang and the selection of molecule becomes very, very critical of where we want to play in China.
Saion Mukherjee
Okay, okay, thank.
Shyamakant Giri
You.
operator
Thank you. Reminder to all the participants, you may press star and one to ask a question. Our next question comes from the line of Harsh Bhatia from Bandhan Mutual Funds. Please go ahead.
Harsh Bhatia
Thank you. Am I audible?
Shyamakant Giri
Yes, you’re audible.
Harsh Bhatia
Go ahead. Yeah. Thank you, sir. Wouldn’t be able to call out the order book for Synxi? I think so. Last quarter it was close to 100 million euros if I’m not wrong. But for this quarter, what would be the audible facility? So the order book is approximately around 85 to 90 still. Although this quarter we produce a little more to clear some backlog. We do have a backlog still in finance. Sure. And considering the 48 million, 48 million euro hundred, assuming hypothetically this is the rate to work with on an annualized basis on the expanded capacity base, what would be the broad capacity utilization for the Finexi business as such across all the lines.
So let me slice and dice for you this one. We do have capacity available in hse, bla, OMI and quantum is where we are peak of the utilization and therefore there price increases, getting higher value format, getting new businesses for new value or more value. Is the strategy just to add harsh is that in Senexe the Fontaine line G has recently been commercially operating. So this will go up from this quarter’s run rates. Fontaine has done hyderabadi site like Mr. Sadhu explained a little while ago is that it was a few products launched and there ample Runway for further capacity utilization.
So there is you know further plans in the tech transfer project happening.
Shyamakant Giri
So it will go up further at heavily side.
Harsh Bhatia
As you know that there are a few new layers recently set up, few more are coming but there’s one new wire lamp expanded. So all this will in the next year more or less be operational and then when we see have revenue scale up significantly from this level, would it.
Shyamakant Giri
Be fair to say.
Unidentified Speaker
I understand that Frontenay would be more so product mix rather than a pure capacity lever but that’s more to do with Herwell and DNA. But would it be fair to say at current capacity you can maybe easily go to let’s say a quarterly run rate of 100 million euros just based on the current capacity or the expanded capacity piece. Also expanded capacity definitely would be before the BLS new line growth target it should be around between 50 to 55 million. Okay. Before BLA is in the wild. So when that gets commercialized next year. It could further grow.
Harsh Bhatia
Okay. And just one clarification. I think you had already spoken about this a few quarters back. But just to refresh our memory, just a very basic question on the GLP cartridge capacity, self image and cartridge capacity. The 40 million going to 140 million units at the cartridge level and we are seeing the batch indicated to the pen assembly lines as well. So at let’s say 140 million cartridge capacity for the full finished part, how many pens can we produce? Or the other way to ask this would also be that how many multi dose pens slash auto injectors single use auto injectors would be able to provide? Assuming that there could be some part that has contributed, is that a fair understanding or is there something that we are missing? So the pen line that we are incubating has around 160 to 200 tons per minute.
That’s the kind of speed it is a high speed pen. And if I if I understand your question correctly, you’re asking how many tons we can produce, is it? So on the basis of this 140 million cockfish capacity, how much of that can lead to incremental pens output? Because I’m assuming that that is the output that you’d be able to provide to the customer at the end, would it be multi dose pens or simple auto injector pims?
Shyamakant Giri
Whether it’s multi dose or single dose is the same. The best device is the same 140mAh. If cartridges are similar, only the assembly machines are depends devices are different.
Harsh Bhatia
Okay, so then it wouldn’t matter. Broadly your 140 million cartridge capacity would be fungible across whether it is a multi dose or a single use. Thank you. Thank you.
operator
Thank you. Our next question comes from the line of Ankush Mahajan from Santum Wealth. Please go ahead.
Ankush Mahajan
So this current capacity of 40 million. What is the current capacity utilization in the last quarter? And my other one is that this. US run rate revenues in the range of 700 crores. So how do you see US business considering this tariff structure and distributors or how do you see it in the near future?
Shyamakant Giri
So on the cartridge currently it’s very limited capacity utilization because Hira is the only one from the commercialization perspective. But we are also taking batches for exhibit batches and development batches for the other CDMO contracts we have. So till the ozambique or launch and commercially the capacity utilization will be lower. So currently most of the capacity used for the development batches, not for the commercial. And what’s the second question.
Ankush Mahajan
On the US side there are three factors which will, which will impact the US business going forward. One of course was enough for current timing that we have discussed launches of cms. Okay. So with all those factors and whatever we are doing, we are doing, we are doing, we feel will be guided to growth in the US So we still stick to the guidance of growth in the US market.
Shyamakant Giri
Can you repeat the question?
Ankush Mahajan
So my question was that where is that tariff is announced on the Trump government. So how do we see the US business in upcoming quarters now either distributors. Or there is destocking is happening in the US market or not?
Shyamakant Giri
Yeah. So you know as of now there’s no tariff on pharma. But we have to see how much and how does it happen. But as to the discussion we have, we have to, we will pass on to the partners and they have to pass on to the front end purchasing groups. So that’s how the discussion is. But everybody is now keeping a finger across when and how much they will charge. Because the market says for generics they may be exempting but mostly on the branded side imposed large studies.
Ankush Mahajan
Thank you.
operator
Thank you. Our next question comes from the line of Dhawal Kut from Jeffries. Please go ahead.
Dhawal Khut
Hi, thank you sir for taking my question. For the European market wanted to know which was the bigger growth driver between the new product launches, especially the liraglutide and new tech transfer project. And secondly when we launch product, is there any channels benefit that we get whose revenue may not be available in next 12 quarters, but as we gain the market share, it again scales up to that level.
Shyamakant Giri
So the CMS project is on market product. It’s only a transfer from European side to client side. So there’s no question about gaining market share. It’s already there. And the NIO product is already launched. It’s already approved. Live order we just filed, they’re filing the OSS with the data. So that approved will come the first quarter of next year. That’s when that business will start. But there’s already a market which is already there. Basically the chance for a manufacturing side from Europe to India.
Dheeresh Pathak
Okay, so the yoy growth that we see within the European market, what will you attribute it to?
Shyamakant Giri
Mostly it’s CMS that got launched in Europe and some of lira launched in uk.
Dhawal Khut
Okay, and is there any benefit of channel selling in the lira launch that you have done? And what are the other markets that I scheduled for launch during the year?
Shyamakant Giri
So for the other market there’s no channel filling unlike us. So this is more a strength. But the other markets, what we estimate, we have launched in South Africa and Saudi last quarter and there’s Mexico and few other markets in pipeline we launched.
Dhawal Khut
Okay, that will occur this year itself, right?
Shyamakant Giri
Yes. Yes.
Dhawal Khut
Okay. Okay. Thank you. That answers my question.
operator
Thank you. Ladies and gentlemen, due to paucity of time, this was the last question. I now hand the conference over to Ms. Ranjan Jain for closing comments.
Runjhun Jain
Thank you for joining us today. Greatly value us questions and active engagement during this session. If you have any additional queries, please feel free to reach out to us. We look forward to connecting with you again next quarter. Thank you.
operator
Thank you. On behalf of Glant Pharma Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines.