Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Gland Pharma Limited (NSE: GLAND) Q4 2026 Earnings Call dated May. 15, 2026
Corporate Participants:
Shriniwas P Dange — Head of Investor Relations
Srinivas Sadu — Executive Chairman
Alain Kirchmeyer — Chief Executive Officer – Cenexi
Analysts:
Tushar Manudhane — Analyst
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, good day and welcome to The Glan Pharma Limited Q4FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing STAR and then zero on your touchdown phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Srinivas Dange, head Investor Relations.
Thank you. And over to you sir.
Shriniwas P Dange — Head of Investor Relations
Thank you. Sagas. Good evening everyone. We welcome you to Glan Pharma Earnings conference call for Q4 of FY26. I am Srinivas Janghi from the Investor Relations team at Glant Pharma. Today we have Mr. Srinivas Sadhu, Executive Chairman, Mr. Ravi Mitra, Chief Financial Officer from India Office and Mr. Alan, CEO of Senexy who is connected from France. We will begin the call with the business highlights and operational highlights from Mr. Sadhu followed by updates about Senexy from Mr. Allen. This will be taken up by the Group financials overview by Mr.
Dhavi. Before we proceed, I would like to remind everyone that some of the statements made today will be forward looking and are based on management’s current estimates. These statements should be considered in light of the risk associated with our business. This call is being recorded. The playback and script 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 Srinivas. Good evening everyone and a warm welcome to all of you to the Alama’s earnings call for the fourth quarter and full year ended FY26. I will begin with the strategic and operational overview. Alan will then share an update on Senexy and Ravi will walk you through our financial performance. It has been a very strong quarter and a year for us in terms of revenues and profitability. It has been driven by robust growth in the CDMO segment alongside new product launches, improved SYNXE performance and healthy profitability across various business segments supported by ongoing cost efficiency initiatives.
We remain confident in sustaining this momentum supported by a pipeline of complex product launches and the continued ramp up of CDMO partnerships. Let me begin with an overview of our performance. For the fourth quarter of FY26 we reported revenues of INR 17,428 million reflecting a growth of 22% year on year. Adjusted EBITDA for the quarter stood at INR 5244 million with margins of 30% and adjusted profit after tax was INR 3667 million with margins of 21%. The quarter saw strong momentum driven by new product launches including Dalba, rancing higher volume from recently secured tender wins, continued ramp up in key products and improving capacity utilization along with steady contribution from Synxe.
For the full year FY26 our revenue stood at INR 64,307 million. The new Syringa growth of 14.5%. Adjusted EBITDA came in at INR 16,826 million with margins of 26% while adjusted PAT stood at INR 10,455 million with margins of 16%. The CDMO business represented 46% of total revenues supported by healthy growth of 28% driven by our continued strategic focus on investments. The consolidated performance reflects our ability to deliver high margin CDMO projects along with expansion of product portfolio supported by strong operating leverage and cost optimization initiatives.
Let me now walk you through the base business operational performance during this year. Starting with the United States which continues to remain our largest market, we have seen strong new product and volume led growth. Revenues for the quarter were INR 9716 million growing at 26% year on year while for the full year revenue stood at INR 33,181 million with a growth of 11%. This growth has been primarily driven by new product launches and increased volumes from existing and new GPO contracts. During the year we launched 31 products in the US including five products in quarter four.
Improved margins in the year reflect efficacy of operational efficiency improvements and operational leverage backed by volumes based and new product based expansion in Europe and other related markets in strong and accelerating momentum. Revenues for Q4 stood at INR 794 million while full year revenues were INR 3,000 to 49 million reflecting a growth of 11%. Growth has been supported by early benefits from our integrated business development model. The rest of the world markets Revenues to the quarter stood at INR14.68 million growing at 17% year on year while full year revenues were INR6511 million reflecting a growth of 7%.
Growth has been supported by tech transfer and CDMO business along with steady performance in our own portfolio. In India, revenues for Q4 were INR 670 million and INR 2,670 million for the full year. Coming to the SENEXC business, it continues to deliver a steady performance with revenues of Euro 45 million during the quarter reflecting a growth of 4% in year on year, Genex is now EBITDA positive, operationally stable and poised for growth. This performance reflects disciplined execution throughout the year driven by higher capacity utilization, contract renegotiations to account for inflation, workforce rationalization, ramp up of new products and deeper integration planned across business development, technology transfer and shared functions.
Alain will provide further details of the same. We remain confident of its continued contribution to both revenue growth and margin expansion over the medium to long term, notwithstanding some inherent quarter to quarter variability. At an Overall level, during FY26 we have strengthened our market position, supported a broader geographic footprint, deeper customer engagement and increasing traction from our differentiated high value product portfolio. Operationally, FY26 has been characterized with strong volume growth and improved capacity utilization.
Capacity utilization across key lines is now translating in improved operating leverage and profitability. We are putting new capacities in our sites to cater to improve demand of our existing products and planned new launches in line with our expectations. We have received approvals particularly Dalgivensin in February and Multivitamin in April. Dalvansin has been launched in US and European markets and is already seeing strong demand in ramp up. Similarly, our Multivitamin portfolio is expected to have a steady revenue contribution.
Shriniwas P Dange — Head of Investor Relations
These
Srinivas Sadu — Executive Chairman
Products are expected to be meaningful contributors to growth in FY27 and beyond. Our CDMO business continues to show strong traction and is emerging as a key pillar of our long term strategy. During the year we signed multiple new CDMO contracts and expanded our pipeline across oncology, peptides and complex injectables. One of the major CDMO projects announced earlier is progressing well and is expected to be commercialized in the history of FY28 with an estimated annual revenue potential of USD 25 to 30 million.
In addition, few other high value complex CDMA contracts were signed. These are expected to contribute meaningfully in the medium term. For the full year, FY26 CDMO business contributed 23% of base business revenues growing at 33%. We clearly see the key driver of growth and margin expansion going forward in the GLP1 space. We have made significant progress with eight contracts already signed and additional 67 are expected to be signed soon and current cardage capacity now stands at 140 million units.
Our approach remains disciplined and value focused, positioning this as a strong mid to long term opportunity with meaningful upside. We continue to focus on capability building by exploring in licensing opportunities in the areas of differentiated therapy areas or drug delivery systems like liposomals and biologics or biosimilar and capacity additions. On the cost front, our focus on yield improvement, alternate sourcing energy optimization and process efficiencies continues to deliver results contributing to approximately 1 to 2% margin improvement.
At the same time, our investment in AI and automation across quality, R and D and manufacturing will create structural efficiency advantages for the future. Our R and D efforts remain focused on building a differentiated pipeline. During FY26 we spent INR $2,230 million on R&D representing on 5% of base business revenue in the USA. We filed 24 NDAs, received 28 approvals and launched 31 products. Our pipeline is increasingly focused on complex injectables and specialty platforms which will drive long term value.
We are witnessing increased demand in existing products on the back of contract wins with competitive pricing which in turn is being achieved with our cost improvement programs with respect to the procurements and economies of scale. To cater to this demand, we are investing in the capacity expansions capex outlay of rupees 2000 crores over next five years. Looking ahead, we remain confident in our growth outlook supported by recent high end product launches, product ramp ups and CDM execution. At the same time, we expect EBITDA margins to remain strong.
To summarize, in FY26 we have strengthened our operating foundation and built multiple growth engines. We remain highly confident in our strategy execution and long term growth trajectory. Thank you for your continued trust and support. Over to you alain.
Alain Kirchmeyer — Chief Executive Officer – Cenexi
Thank you Mr. Sadhu and good evening everyone. This has been another good quarter at Senexi. We are happy to report that we delivered on our guidance for the last quarter of our financial year 2020. NXE recorded 45 million euros in revenue this quarter, a 4% increase over the same period last year with a major revenue improvement in Herauville and Fronten compared to the previous year. After a profitable Q3 FY26 quarter, we are pleased to inform you that we delivered an EBITDA of 1 million euro in Q4 FY26 in line with our guidance.
This underscores that our turnover strategy continues to gain momentum quarter after quarter. During full year, FY26 revenue stands at 182 million euros reflecting an 11% growth year over year and EBITDA improved by 16 million euros. I will now provide key site level updates in Frontenay. The production ramp up on our new ample filling line which was installed last year is progressing as expected. We are also actively preparing the replacement this summer of another old ampoule line with a new high capacity line that will add additional 30 million ample capacity by 2027.
The activity in our Heruvin sites continues to grow significantly supported by the ramp up in production of two successful products launched in 2025, an inactivated vaccine and a sterile ophthalmic gel. In Omni, one of our existing customers asked us to relaunch the development of a solid product that could become a game changer for the site. Finally, in Brain Lalou we continue to see strong momentum in our injectable pipeline supported by sustained customer interest and a healthy flow of requests providing good visibility for future growth.
We won a large contract with the leading European laboratory to manufacture a hormonal drug filled in pre filled syringes. We remain confident in our outlook for next financial year supported by an improvement of our operational performance and an increase of output in Frontenay, a strong ramp up of production with recently launched products in Nervil and the continuing favorable outlook in ONI and Brennan. The ongoing investment in capacity increase and the fast growing business pipeline reinforce our confidence that we will achieve our midterm objective of the Mid Teen ebitda.
Thank you for your attention. I now invite Ravi to take you through our financial performance in more detail. Ravi, over to you.
Srinivas Sadu — Executive Chairman
Thank you Alan Good evening everyone and thank you for joining us today as we review our financial performance for the fourth quarter and full year FY26. I am pleased to share that we have reported highest ever quarterly revenues and EBITDA during fourth quarter of FY26. FY26 has been a strong rewarding year for us marked by healthy revenue growth, improved profitability and solid progress across all key business segments with significant 28% growth in CDMO business. Currently, CDMO business constitutes 46% of the total revenues.
The fourth quarter performance also was stellar with encouraging revenue growth and improved profitability with new product contribution. Let me begin with the performance of the fourth quarter for Q4FY26. Our consolidated revenue stood at Rupees 17,428 Million reflecting a healthy growth of 22% year on year. This growth was driven by new product contribution, strong volume expansion and continued traction in our older key products. The base business delivered a robust performance while Synexi continues its momentum with positive EBITDA contribution during the quarter.
Overall gross margins for the quarter stood at 66%, an improvement of 30 deaths over previous year reflecting the benefits of improved product mix and operational efficiencies. Excluding Senexe base business, gross margins were at 62% which improved 90 days over previous year reflecting our continued focus on cost optimization and margin improvement plans. Moving to the full year performance, I am pleased to highlight that FY26 has delivered strong results across all key parameters. The consolidated revenue for the full year stood at rupees stock 64,307 million reflecting a growth of 14.5% year on year.
The base business delivered consistent growth supported by new product launches, increased volumes and improved market share while SYNXT contributed meaningfully with a strong recovery and growth in revenues. Overall gross margins for FY26 stood at 65% reflecting an improvement over last year of 230 BEPS driven by favorable product mix operational efficiencies and higher contribution from value added segments. Excluding semexy, base business gross margin were 61% which improved by 260 BEPS over previous year aligned with our strategy of building a strong pipeline of complex and differentiated products.
R and D expenses for Q4 stood at Rupees 506 million representing approximately 4% of base business sales, while for the full year R and D expense were Rupees 2230 million or about 5% of base business revenue. Our continued investment in R and D reflects our commitment to strengthening capabilities in complex injectables, peptides and specialty delivery platforms and we are seeing good progress across our development pipeline. Coming to profitability during Q4 FY26 adjusted for ESOP related non cash expense of rupees 114 million adjusted EBITDA stood at rupees 5244 million with margins of 30%, a remarkable improvement of 500 revs over previous year.
Margin growth was supported by operating leverage with two additional lines getting commercialized and cost efficiencies for the full year. FY26 adjusted EBITDA excluding ESOP related expense and other one off items stood at rupees 16,826 million with a margin of 26% and improvement of 360 BEPS over previous year. This was mainly supported by SENEXI turnaround, operating leverage and cost efficiencies for the base business excluding Senexc. Adjusted EBITDA margin remains strong at 41% for the quarter and 38% for the full year FY26 highlighting the inherent strength of our core operations.
We are also pleased with the progress at synexi which has significantly improved its EBITDA performance and return to profitability for the 3/4 during the year, marking an improvement milestone in its turnaround journey. Other income, comprising primarily foreign exchange gains and interest income stood at Rupees11.15 million for Q4 and Rupees3163 million for FY26 adjusted net profit for Q4 stood at Rupees3667 million translating to adjusted PAT margin of 21% versus 13% in previous year. For the full year, adjusted net profit stood at rupees 10,455 million with margins of 16% versus 12% in previous year, reflecting a strong improvement over the previous year.
On taxation, the effective tax rate for the quarter stood at 28% and the full year stood at approximately 29%. As of March 31, 2026, total cash and cash equivalent at the group level stood at Rs.33,591 million. External debt at an equity level stood at Rupees 24. 34 million and overall our balance sheet continues to remain strong and well capitalized. Cash flow from operations remain healthy at Rupees 4045 million for Q4 and Rupees 10314 million for FY26 compared to Rupees 9147 million in FY25 reflecting improved operating performance and better working capital management.
Our cash conversion cycle for FY26 averaged 164 days showing improvement compared to previous year driven by better inventory management and receivables control. Total capex during FY26amounted to rupees 4938 million, primarily directed towards the capacity and capability expansion in India, ongoing investments at synexy and selective projects aligned with our CDMO and complex product strategy. These investments are in line with our long term strategy and building high value capabilities and supporting future growth opportunities.
The year has seen strong revenue growth, improvement in margin profile and robust cash generation along with a significant improvement in SYNXE performance. There is an increasing integration of synexy with Glant Pharma’s core operation, particularly in business development, customer engagement and vendor participation. We are now seeing meaningful cross selling benefits with joint capabilities enabling us to win larger multi geography contracts and attract new global customers. Genexion GLAN will increasingly be operating as one unifying platform in future.
With that I would now request the moderator to open the line for questions. Thank you,
Questions and Answers:
Operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press Star and then one on their touchtone phone. If you wish to remove yourself from the question queue you may press Star and 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. Your first question comes from the line of Pushar Manudane From Motilal Oswal Financial Services.
Please go ahead.
Tushar Manudhane
Thanks for the opportunity and good set of numbers for the quarter. So if you could share the milestones on the revenue share for the quarter. That’s my first question.
Srinivas Sadu
The quarter Profit share is 9%, Milestone is 6%.
Tushar Manudhane
So excluding that or like existing for the same, the EBITDA margin is still quite healthy for the quarter. And in fact in terms of the absolute EBITDA as well. So just to understand how sustainable is this as far as base business EBITDA is concerned?
Srinivas Sadu
Yeah. As you said, I think we could launch the major CDMO products and also the two large products, Dalba and Dalba got launched in March. So that will be analyzed this year that product I imagine. And also there are several CDMO projects what got launched in this quarter and this is the analyze this year. And these are long term contracts. So these are. This will be sustainable in terms of long term.
Tushar Manudhane
And then secondly on this, if you could quantify like the eight contracts value wise, how much of this would be like the GLP8 contracts which you mentioned are already signed and how much of the capacity of this 140 million units will get utilized for these eight contracts.
Srinivas Sadu
Besides, we’re not actually talking any numbers for GLP. Even the guidance we’re giving is excluding GLP because the it all depends on these partners getting approvals in different markets and volumes. So we’re not giving any numbers out yet, we’re just seeing how many contracts and the units also is very difficult to assume right now. So the forecasting or the guidance we give is excluding glp. So anything which happens and GLP will upside.
Tushar Manudhane
Got it. And while not getting into details with respect to GLP, but any approvals so to say we expect in FY27. Yeah,
Srinivas Sadu
At least, at least our partners are expecting approvals. Yes.
Tushar Manudhane
And so just secondly, with respect to Synaxi, is it now safe to assume that at least we’ll be ebitda neutral for 27 and with sort of 45 million euro revenue.
Srinivas Sadu
So for FY27 our target is to reach at least make made single digit high single digit EBITDA by the end of this year. We should. You should get there. Yeah.
Tushar Manudhane
And this would be driven by the scale up in revenue as Q4 actually will get scalable revenue despite that.
Srinivas Sadu
Yeah. So the focus is more on efficiencies and putting up lines which you have invested into. The focus is more on that and revenues will with these new product launches, their high value products will replace the low value products. So the revenue increase may not be that great, probably. But mostly on the profitability, the improvements will be what you’re seeing is more on the efficiency.
Tushar Manudhane
Got it. And just lastly on the hedging policy, if you could sort of refresh, followed by bland on both base business as well as synxc.
Srinivas Sadu
So we have naturally hedged policy. So most of our which we import is open and as well as the revenue is open in Genexi, it’s mostly euro revenue and euro cost. So there’s no need to hedge there.
Tushar Manudhane
Thanks. Thank you.
Operator
Thank you. The next question comes from the line of Neha Manpuria from Bank of America. Please go ahead.
Shriniwas P Dange
Yeah, thanks for taking my question. My first question is on Sonexi. So on your comment that the revenue increase should not be that much, I mean, given the investments that we have made with the addition of anfield lines and the contract lines that we’re talking, we did see 50 million Euro in the last quarter. So should SYNECD not be above $200 million? 200 million euros of revenue in FY27.
Srinivas Sadu
So we might touch about close to 200 in FY27. But the majority of the growth meltdown next year when we put up this additional line in August of this year, that will add capacities that will commercialize next year, that will ramp up a bit. But FY27,200 is the target we are looking at. Yes,
Shriniwas P Dange
Understood. Okay. So the capacity addition that we’re doing, the ampoule lines that we’re adding will not contribute in this year. Even the line that we have added last year, one of the lines.
Srinivas Sadu
So last year line which we added in Ampulin in Fontaine is ramping up now. So that is adding the revenue, increased revenue at Fontaine site. The new additional line which will be put up in August of this year, post getting it qualified, the ramp up will happen next year.
Tushar Manudhane
Understood. Okay. And for the base business, what is the growth momentum? We should assume there, you know, is the mid teens moment. Given the CDMO contract
Shriniwas P Dange
Wins and the new product launches, would that be a fair assumption? How should we think about X and XE growth
Srinivas Sadu
As a console? We are looking at around 13%. 12. 13% growth. So it’s a mix of both Genexc and base business. This is excluding the GLP. Whatever. We get upset on that.
Shriniwas P Dange
Understood, sir. And on this, on the CDMO business that you mentioned, it is, you know, I think you I missed the revenue, but did you say it was 46% of the revenue and group 23%
Srinivas Sadu
The base business is 23% with the samex is 100% CBMO. So as a group it’s 46%. The base business is about 25%. Yeah.
Shriniwas P Dange
Okay. And the contract, the high value contracts that you’re talking about, I think one of them that should start, I mean all of the contracts put together. What would be the pipeline that we have which gives you this medium term visibility? If you could give any color there, the CDMO business.
Srinivas Sadu
FY27, it’s almost, I would say 40, 40 million. 40, 50 million will come from CDMO. See the additional growth coming from the CDMO contracts in FY27 will be between 40 to 50 million. Yeah, sorry,
Unidentified Participant
This is in the base business.
Srinivas Sadu
Yeah, base business. Correct.
Unidentified Participant
Okay, sorry.
Operator
Thank you. Your next question comes from the line of Shashank Goyal from Infinity Capital. Please go ahead.
Shriniwas P Dange
Yeah, thank you so much for the opportunity. And audible. Yes. Yes. Yeah. What are the good do you expect for the overall business in the coming year and over the next three years? So that you answer this question and then I’ll come one more question.
Srinivas Sadu
Sorry, sorry. Can you, can you repeat that? Some few areas.
Operator
Shashank sir, if you’re using a speaker mode, maybe you requested to use answer because you’re sounding slightly muffled.
Shriniwas P Dange
Can you hear me now? Yeah, go ahead. Hello. Yes.
Srinivas Sadu
Yes, go ahead.
Shriniwas P Dange
Yeah. So my question is what sort of group do you expect from for the overall business in the coming year and over the next three years,
Srinivas Sadu
The next four years. We’re looking at a CAGR of 15% on the AS a console basis.
Shriniwas P Dange
Okay. And my next question is on cx. Like what sort of steady state margin profile can we achieve? So.
Srinivas Sadu
We are looking at mid teen EBITDA level in the midterm.
Shriniwas P Dange
Thank you so much.
Operator
Thank you. The next question comes from the line of Tiwang Shah from Ant Financials. Please go ahead.
Shriniwas P Dange
Yeah, hi sir, Am I audible now? Yes. Yeah. First question is from the. We did the acquisition few years back and still also like, like just now on the last question you spoke about that in next year you can achieve the mix team numbers, right? Was it a good purchase or it’s like, like I’m not understanding what was the concept behind it. Like what was the rational? Because it said we have purchased it two, three years back, if I’m not wrong, next year what was the rational?
Srinivas Sadu
You mean the rationale behind purchasing synaxe? That’s the question. Yeah. So one is of course we are not still expert in the synergies. As a strategic initiative we need to enter CDMO business in Europe. That’s one. Second, the clientele of Senexi is completely independent of what we have. So we are not completely expert at that. So we are working on that. We have already signed five to six products with the same clientele what Senexy has. So although those don’t reflect in Senexi’s business, but that adds to at the group level.
So one is that second, our own products now we have actually taken MAs in Europe. So Chinexi will act as releasing entity there. So more products of plant can get into European market as well from technology plan. They have technologies which you don’t have. Again, like sex hormones you don’t have. So we’re doing a development program where we can develop and then get manufactured Senexe. So there’s a substantial business out there for that. There are not many sites available for it. So there are multiple reasons why I acquired this, not just the business, what they have.
So as we speak we have already started developing some hormone products. Now we’re looking at controlled substances which you can’t do in India, signing contracts with customers of SYNXY for our products and our own products getting launched in years. So there’s several reasons why we did this acquisition.
Shriniwas P Dange
Okay. And sir, the main thing was like currently the SENEXC is operating at the maximum level or it’s like the capacity utilization is just 50 or 80. Can you just give me the brief? Like what’s the capacity utilization over there
Srinivas Sadu
At Synaxi?
Shriniwas P Dange
Yeah,
Srinivas Sadu
So Senexi, some sites are operating at full level, like Fontenay is at almost 100%. That’s a weekend. We’ll add a line and one more line we’re adding, replacing that so that we can increase the capacity so there’s a demand, higher demand than what we’re able to supply today only again of solid orals, it’s almost 100%, I would say 90% occupancy. The other two sides we have capacity where the tech transfer programs have happened and some products are getting launched. Those are probably at 50, 60% capacity.
Two sites. Yeah.
Shriniwas P Dange
Okay. And sir, what’s the future plan on the group base? On the Glenn Pharma group base, what are your future plans to maintain this EBITDA level of 25% plus and like we are just spending 4 to 5% on the RND. Is there any plan to increase or ramp up that part of the double digit or something?
Srinivas Sadu
So we have several programs what we’re doing. One is of course internal R and D where we spend 4 to 5%. We also do co dev projects, around 15 projects. We are working with development partners. Those don’t reflect in this spend what we do. We’re also doing an in licensing program with China in the liposomal side. So those also do not reflect this. So this is an internal R and D spend what we’re showing, reflecting but there’s also spend which is done on different aspects. The other is of course more focus on high tech cdmo.
So the investments are going into safe drawing. Microscale manufacturing technology, nanotechnology. Those are high value CDMOs where the margins are very high. So on one side the volumes are helping us in terms of the products, high volume products which is helping us in operating leverage. So keeping the cost down per unit cost down. The other side we’re also entering contracts which is high value CDMO contracts. So long run I think we are sustained, it can be sustainable in terms of margin.
Shriniwas P Dange
That’s all from us. Thank you.
Operator
Thank you participants. You may press Star and then one to ask a question. The next question comes from the line of Rahul Jiwani from IIFL Capital. Please go ahead.
Shriniwas P Dange
Yeah, thanks for taking my question sir. This overall console top line guidance of 12 to 13% which we provided for FY27, I’m assuming that is an INR accounts but on the currency as well, Both on USD INR and Euro INR we would see almost a 5, 6% kind of a benefit in FY27. So do you think that your guidance of 12 to 13% is a bit conservative because then essentially what we are implying is that the constant currency growth would only be again high single digits.
Srinivas Sadu
So we can’t, we can’t assume what the currency rate would be. So we’re taking on a constant currency whenever we’re giving the guidance. So this is based on constant currency growth. So if any fluctuation currently happens then that will be upside.
Shriniwas P Dange
Okay, so 12, 13% is on constant currency only.
Srinivas Sadu
Correct? Correct.
Shriniwas P Dange
And one, let’s say you said that Senex might see growth acceleration from FY28. For the base business, what is driving let’s say growth in FY27?
Srinivas Sadu
So like I said, the products, what we launched in the last quarter and that’s why the numbers look good, that is annualized and we also won a GPO contract for that. And the MVI multivitamin were launching in this quarter. So these three products are actually contributing to about 40 million. And then we have our own new launches helping us give another 200 crores. So together about 650 crores is from the base business and about 150 crores will come from the Genex business excluding the forex and the GLP1.
And we are also seeing a lot of shortages. We are hearing from us now that could also be an upside. But we think that with the current order book and Forecast at hand, 12 to 13% is the guidance you want to give.
Shriniwas P Dange
Thanks. Sure, sir. And last question from my side. So obviously over the past couple of quarters we were banking on Balba Vincent and the Multi Vitamin portfolio to get launched which is helping us to drive growth now. So for FY27, are we looking at, let’s say any critical product opportunities to come in which you can call out?
Srinivas Sadu
No. So there are already products which are approved which we have tentative approval and the patent is expiring later this year. So the product is already approved. So just the launch is there and there are other CDMA contracts which will start producing it. These are all approved products. So the guidance, what they say, 12 to 30% is without any risk, I would say because almost all the products we have tools except one small product.
Shriniwas P Dange
Okay, sure. Thank you. Thanks for answering the question, sir.
Operator
Thank you. The next question comes from the line of Ashish from Leo Capital. Please go ahead.
Shriniwas P Dange
Thank you for taking my question, sir. So on GLB1, are we looking to register the product ourselves in any of these markets or we will be prematurely relying on manufacturing partners? We’ll be manufacturing partners for companies registering the product.
Srinivas Sadu
Yeah. So we are not developing these products. We are only a CDMO for GLP1. So we will be producing all the SEMA and tazepatides, all the three GLP1 versions will be manufacturing but mostly for. But everything for other customers.
Shriniwas P Dange
My second question is considering we have eight GRP one in the customers approved and eight six in the pipeline, what markets have our partner received approvals in and what sort of capacity utilization do we expect over the next 12 years?
Srinivas Sadu
So I can’t, because if I tell whether the customer got approved or not, then it’s very obvious. So we don’t want to leave that out. Volumes also it’s too early to tell. Like I said, our guidance, they’re saying glp, we want to see how the market forms and when these customers get approvals and how many units they can sell. So it’s too early to give a guidance on that.
Shriniwas P Dange
Okay, but any specific markets which have gotten approved, can you. Is that right?
Srinivas Sadu
No, no, probably you’ll hear once you launch. So don’t let out joining
Shriniwas P Dange
Okay. Okay, thank you. Thank you,
Operator
Thank you. The next question comes from the line of Abdul Kader Puranwala from ICICI Securities. Please go on.
Shriniwas P Dange
Yeah. Hi sir. Thank you for the opportunity. So first question, just a follow up on the previous participant on JNP1. So first of all, any reason why we are not including this in our guidance for 27 and second, if you could, you know, just broadly help us understand this 140 million capacity, what we have now say over the next two to three years, how should we, you know, kind of build up a ramp up into this capacity?
Srinivas Sadu
See, as you know, it’s very difficult to give a guidance because one is of course we are not selling directly to customers. Second, the timing of launches will vary from customer to customer, market to market. And most of the volumes as you know, comes from us where the patent is post to 2030. So the ramp up will happen mostly during that time. So I think next year, I would say a lot of exhibit batches, filings and some approvals will come later, part of this year, maybe third quarter. So it’s very difficult to assume numbers without actually having to know when the approvals will come in which market.
Shriniwas P Dange
Understood, sir. And you know, next one, just a clarification on the opening remarks from the Visa when we talked about opportunities of crop selling coming within the parent cruise. So you know, how exactly should we look at it from a growth perspective? Is it something what we have already worked upon and now FY27 guidance kind of adequately covers it or you know, for the FY28 and beyond, you know, how should the ramp up in this product should pan out? You mean there’s the next integration piece
Srinivas Sadu
You’re saying?
Shriniwas P Dange
No, I’m. I’m talking with the parent with the question cross selling opportunities there.
Srinivas Sadu
No, that. Not with force one. It’s more to do with Senexe. But that’s not guided in FY27. Whatever we’re doing with so soon as an clientele whom we are signing products with them that is not. Here you see that FY28 and there are three MAS which are also signed up. You might see some launches happening from third quarter, but mostly from.
Shriniwas P Dange
Okay, okay, understood. And so last one is a bookkeeping question from my end. So I mean you had an EPR of close to 30% for the year. What should we kind of retain for the next two years?
Srinivas Sadu
You mean the EBITDA margin?
Shriniwas P Dange
No sir, I’m talking about
Srinivas Sadu
The tax rate. Tax rate will improve because sanity profitability, as it improves, there will be the blended tax rate will be better. It will come down got. Thank you.
Alain Kirchmeyer
Thank you.
Operator
The next question comes from the line of Smith Gala from RSP Inventures.
Shriniwas P Dange
Yeah, thank you for the opportunity and congratulations on a good set of numbers. My first question as also you also threw light in your opening remarks. What caused us to go give such a wonderful growth in Q4 especially in the base business
Srinivas Sadu
And what kind of margins are as the base business is
Shriniwas P Dange
Concerned, we have delivered around 40, 41% margins.
Srinivas Sadu
So for a full year, not even with
Shriniwas P Dange
27, 28, what a kind of margin base business are sustainable.
Srinivas Sadu
So if you see last few quarters base business ebitda margins around 35, 36 and we’ve been guiding with that. So we still guide for the year as a base business around 35% 30 to 35 and as a console basis around 25, 26%. Now probably from few quarters we’ve been saying the initiatives we took to increase the CDM of business so that those those contracts which have signed up and got commercialized last quarter and will continue to commercialize moving forward on the initiative side again, two more lines got operational this quarter, one more line will get operational next quarter.
So we’re also getting an operational leverage from capacity because there is a demand in terms of products. So we’ve been seeing which products actually to sell. So there is increased demand. Again we did tell that we got several GPO contracts end of last year which started which we started selling from beginning of this year. So that also added to volumes volume growth and added lines and volume growth that also helped in operation leverage. So that’s where the margins are high.
Shriniwas P Dange
A
Srinivas Sadu
Combination of new GPO contracts which were won because of the better cost structure we have and then the operation leverage and also the CDMO business.
Shriniwas P Dange
Thank you, that was helpful. The next question is I know that we don’t have much impact to the Middle East. It’s around 2 to 3% of our total sales. But any impact do we see on the Middle east side of our business as we might have mentioned Saudi Arabia in some of our growth guidance and any development on the new CEO appointment.
Srinivas Sadu
So if you look at the Saudi it did impact. If you see last quarter, there’s a dip in RW business, major dip is coming from that area because we didn’t ship anything to that space. So probably hopefully next quarter or so if it cools down, that might shipments might start and row might come on track. So that’s an impact for sure from business perspective. From CEO perspective. Yeah, we are Looking at candidates who have stronger CDMO background and also bio background as well. Yeah, that’s an active record for that.
Shriniwas P Dange
Okay. Okay, that was helpful. That was all from that.
Srinivas Sadu
Thank you.
Operator
Thank you. The next question comes from the line of Sayan Mukherjee from Nomura. Please go ahead.
Shriniwas P Dange
Yeah, good evening and thanks for taking my question. Mr. Baba, if you can talk about your investments and any update on the biologics biosimilar space that you had mentioned a few quarters back.
Srinivas Sadu
Investments generally or just in the bio. So on the investment side I’ll touch upon the general side. We do have now facing some constraint on certain product ophthalmics. We are tight on it. So we have taken good approval to put up ophthalmic line with the capability of suspensions. Also we are getting with the blowfield seal technology. So that will be next year but the investment will start now. So then of course some CDMO contracts needed dedicated equipment and lines. So there is investment going in that.
So around 2000 crores we are investing in next year in addition to about 300 crores this year. FY27 we expect about 500 crores as a 500 crores investment in FY27. Yeah. And on the bio side still we’re not invested much still it’s a slow run. So in the guidance we gave also the numbers I would say is lower, not that much. But we are looking at smaller small scale projects just to understand the space and know how. But not much investors going into that space yet.
Shriniwas P Dange
Right. I think the second question I had was on medium term growth in investing 2000 crores. I think you mentioned, you know over the next four or five years you expect like mid teen growth on a console basis. And you know there are various growth drivers that you have talked about. Is it possible for you to sort of indicate the key drivers or what you think would be the number one, two or three drivers that would sort of help deliver 15% kind of mid term top rent growth.
Srinivas Sadu
I think our cinema pipeline is very strong. I would say the RPO bag portfolio is strong again so several products in that they’re under patent and which goes off patent. So that is one big growth driver. One is the complex injectables suspension products. Then there are sterile API based complex injectables. That’s another growth driver. And senior we did mention last year on the CMS project or design with European entity. So that will commercialize from end of this year, third or third quarter of this year.
So that is a big revenue driver for us along with some pen device projects. What we signed up with multinational on the CDMO side, that’s a good driver. So there are several pipeline projects. I would say many are approved products, some are changed from a wire to device projects which have taken up along with RPO bags. I think these are the major growth drivers.
Shriniwas P Dange
You know, I mean is it like over the next few years your growth rate would be largely steady at like mid teen or you see one particular year where there could be a step up like FY 2829 or is it more
Srinivas Sadu
FY 29? See FY 29 will be one big step up. Couple of complex products which are big ones will be launched for the second or third quarter. FY29, that could be one big step up. But I think the steady state this year if it is, we are seeing 13% at a constant currency and then FY28 could be 15% and then later it could be 19, 20% or bit more. So there is a step up in FY29 where more complex products will hit the market. But otherwise it’s more CDMO and other products which we have some. We have settlement dates in FY28.
Those also gets launched in FY28 also.
Shriniwas P Dange
Understood sir. And last question if I can on the cost side because the Middle east have you seen any pressure in terms of raw material availability of price or power cost in Europe, any sort of an impact on account of the Middle east conflict? And also in your comments you also mentioned about cost optimization. I mean is the scope for additional cost optimization within your existing setup and if you can quantify that.
Srinivas Sadu
Yeah. So this is an ongoing exercise for us in terms of cost optimization from the cost perspective. Europe I think Chenichi we power costs and in India we more and more we are looking at solar. We have already acquired a solar plant so that should help us in reducing some of our power costs. And also it’s a constant optimization in terms of several products where the batch service was low. We had increasing those batch services because of the contracts we want. So I think it’s an ongoing exercise.
In terms of Middle east yard. It’s not the question of availability but I think it’s more to do with we hear there is a short delay in solvent supplies but we’re not a major API producer. So there’s not much impact on solvent side but from wine, sand, glass there is a request from the suppliers to increase it by 5 to 6%. So we are studying the impact on the long run. It’s too early to tell but probably there could be an impact of 1,2% overall. On the logistics side, as you know model, we share the cost with our partner so it will be minimal cost.
But again we have to see the total impact. But probably 1 to 2% of the revenue could be an impact.
Shriniwas P Dange
Thanks a lot.
Operator
Thank you. The next question comes from the line of Shyam Srinivasan from Goldman Sachs. Please go ahead.
Shriniwas P Dange
Good evening. Thank you for taking my question. Just the first one on the cartridge capacity now at 130 million. Sir, I know you’re not telling which are the contracts with geographies, but any sense of these of 8? I don’t know whether all 8 are GLP1, but aggregate roughly how much of that 140 million could be GLP1 or it’s been contracted.
Srinivas Sadu
All, all are GLP1 only just a different molecules.
Shriniwas P Dange
No, no, no. How much has been contracted, not capacity. So can you repeat? Sham, we didn’t get your last statement.
Srinivas Sadu
No sin is asking of the 140 million, just capacity, how much have been contracted? Now
Shriniwas P Dange
Aggregate number. I’m not looking at each contract but aggregate how much has been contracted at least in the next 12 months. So Sham, it is not possible for us to give you how much of the capacity has been contracted because it is basis the projections that are provided by the partner and it changes from time to time. So it won’t be possible for us to quantify how much of it has been contracted so far.
Srinivas Sadu
The expectation is very minute, 12 months.
Shriniwas P Dange
As these come to fruition and maybe there’s a press release from some of the partners, it will come to light in the public domain. Would that be fair?
Srinivas Sadu
Yeah, once. Once they get approval then you know we will make an announcement.
Shriniwas P Dange
Understood, thank you. Second question is on constant currency growth for the quarter Q4 rupee growth is 22. But what is constant currency growth? And maybe if you can also tell us the US revenue growth,
Srinivas Sadu
We can come back to you on that. It’s very difficult to tell because we have multiple because it’s also volatile during that quarter because many invoices are made at different point of time. And we also have some US sales happening in rupees, especially with the local customers. But we’ll come back to you. Srinivas will come back to you separately.
Shriniwas P Dange
Thank you sir. Last question is on Dalba Vancouver. So was there evenly launched in Feb. Was there a channel push or an inventory push? Given that it could have increased Q4 numbers and maybe normalizes over time, Would that be a development in quarter four?
Srinivas Sadu
Not really? In fact, after we launched, the customer has won the Regent contract as well. So. So the numbers are actually up from the first quarter, the next four quarters. If you analyze that, the analyzed numbers will be higher than what we sold in that quarter.
Shriniwas P Dange
Perfect, sir. Thank you. And all the best.
Srinivas Sadu
Yeah,
Operator
Thank you. The next question comes from the line of Ashish from your capital. Please go ahead.
Shriniwas P Dange
So I mean I previously asked regarding the GRP1 ramp up and you told that it might be delayed. And I wanted to know what is the rationale behind adding the next hundred million capacity? Was the previous 40 million fully utilized?
Srinivas Sadu
No. So when everybody launches in 2030, so we’ll be ready. We should be ready with that. So what we have also done is they also signed insulin contract for this line which will help us fill the capacity for some time till the full ramp up happens. So the line, what we have is a combo line which can fill vials and cartridges. So we will fill insulin cartridges and vials for at least next few years till full ramp up happens for the JP1. But as you know, we can’t produce to everybody if we just have 40 million.
When it commercializes. It’s more to do with commercial launch. When it happens in 2030, we should have enough capacity, but the filing will happen from that line. So that’s the reason.
Shriniwas P Dange
So the insulin wires are occupying the total 140
Srinivas Sadu
Cartridges. Might. Might occupy 30 to 40 million in next couple of years. It will ramp up, but at least that will cover till 2030 majority of the costs.
Shriniwas P Dange
Okay. Okay, I got it. Thank you.
Operator
Thank you ladies and gentlemen. We will take this as our last question for today. I now hand the conference over to the management for closing comments.
Shriniwas P Dange
Thank you everyone for joining us today. We appreciate your participation in the question and answer session during the fall. If you have any follow up questions, 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 Gland Firewall limited that concludes this conference. Thank you everyone for joining us. And you may now disconnect your line.