Granules India Ltd (NSE: GRANULES) Q3 2026 Earnings Call dated Jan. 23, 2026
Corporate Participants:
Prachi Ambre — Investor Relations
Krishna Prasad — Managing Director
Sanjay Kumar — Chief Strategy Officer
Mukesh Surana — Chief Financial Officer
Analysts:
Krisha Tansara — Analyst
Bino Pathira Mapil — Analyst
Tushar Manudani from — Analyst
Yashika Gogia — Analyst
Ritvik Seth — Analyst
Sukriti D Patil — Analyst
Abu Rafe — Analyst
Vivek Gupta — Analyst
Sania — Analyst
Presentation:
operator
Ladies and gentlemen have been connected to The Granules India Ltd. Q3 and NM month conference call. The call will begin shortly. Request you to please stay connected. Thank you. Ladies and gentlemen, Good day and welcome to Granules India Limited Q3 and 9 month FY26 earning conference call hosted by MUFG Investor Relation. As a reminder, all participant line will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchdown phone.
I now hand the conference over to Ms. Prachi Amre from MUFG Investor Relations. Thank you. And over to you ma’. Am.
Prachi Ambre — Investor Relations
Thank you Danish. On behalf of Granules India Ltd. I extend a warm welcome to all the participants on the Q3 and 9 months FY26 financial results discussion call today. On the call we have Dr. Krishna Prasad Chigurupati, Chairman and Managing Director. Ms. Priyanka Chigurupati, Executive Director Mr. Mukesh Surana, Chief Financial Officer Dr. P.V. srinivas, Chief Technology Officer and Mr. Sanjay Kumar, Chief Strategy Officer. Before we begin the call, I would like to give a short disclaimer. This call contains some of the forward looking statements which are completely based on our expectations, beliefs and opinions as of today.
The statements are not a guarantee of our future performance and involve unforeseen risks and uncertainties. With this I would like to hand over the call to Dr. Krishna Prasad sir for his opening remarks. Over to you, sir. Thank you.
Krishna Prasad — Managing Director
Thank you, Prachi. Good evening ladies and gentlemen. Thank you for joining us today and for your continued interest in Granules India. We trust you have had a chance to review the detailed presentation available on our website. Let me begin with Our consolidated performance Q3FY26 has been one of our strongest quarters despite a temporary loss at our peptide CDMO business. We reported revenues of 1388 crore, a 22% increase year on year. EBITDA was 308 crores growing 34% over the same period last year. Margins improved meaningfully driven by disciplined execution and better operating leverage. This momentum reflects the strength of our diversified business model and the progress we are making on multiple strategic fronts.
Regulatory and quality upgrade Regulatory excellence continues to be a critical priority for us. We made steady progress across all our facilities for this quarter. Gagulapur Facility Our remediation plan remains on track. We held a post warning letter meeting with the FDA in early January. We will be submitting the requested documentation shortly. Importantly to date, the Agency has not raised any concerns regarding the adequacy or pace of our corrective action. We expect a formal feedback after our submission and remain confident about the pathway to resolution. As a prudent de risking measure, we have filed select products from our US and GLS facilities.
The site also received NVISA Brazil GMP certification, reinforcing the improvements in our quality system. GLS at Genome Valley the US FDA conducted an unannounced PAS and JMP inspection from 15th to 19th December. We received five observations, none related to data integrity. Our responses were submitted within the stipulated timeline earlier in the quarter. GLS received a pas approval on 10 November and an EIR on 11 December for the inspection held in August. They have also received a CBE 30 approval following the recent inspection. GPI in the U.S. our GPI facility received the air on the 5th of November, closing the PAS inspection from June.
GCH our U.S. packaging site, the U.S. fDA completed a GMP inspection on the 4th of December with zero form 483s across the network. We continue to advance digitalization of manual operations. Several initiatives are already live at bpi. We expect to complete implementation at Kagila Port by mid calendar year followed by rollout to other sites. While a lot of our consultancy costs have come down, we expect to invest into system enhancements which will involve some CAPEX and OPEX over the coming quarters. These steps will strengthen both the reliability and resilience of our operation. R and D Filings Our R and D and regulatory pipeline progressed well this quarter.
We filed one EU dossier which is DCP 8 new product registrations in Rest of the World Markets through partners 4 DMFs in rest of the world countries. Approvals included a tentative US FDA approval for generic adgenies from GPI, 1 approval in Europe, 2 approvals in row markets, 1 DMF approval in China. Our increasing focus on ROW markets supports our strategy to diversify beyond the US and Europe ESG progress Sustainability continues to be a core part of who we are this quarter. Our CDP climate Change rating improved to A up from B. Our SNP CSS score increased to 62, placing us among the top 10% of our global peers.
We reinforced our commitment as a signatory to the UN Women’s Empowerment Principles, UN Global Compact and PSCI. Our Ragilapur facility achieves zero waste to landfill which is platinum plus with over 99% waste diversion. We continue to make measurable progress across Code 1, 2 and 3 emissions, renewable energy, sustainable procurement and water neutrality initiatives Preferential Issue during the quarter we also took a strategic step to strengthen our balance sheet through the provincial issue which saw strong support from shareholders in yesterday’s egm. The proceeds from this issue enhance our financial flexibility and will be deployed prudently to support capacity expansion, drive efficiency and pursue value accretive opportunities while maintaining our focus on governance and capital discipline.
We believe this capital raise positions the company well to accelerate growth and create sustainable long term value for all shareholders. Strategic Direction as we noted last quarter, Granules has entered a phase of renewed momentum. Our strategic priorities remain clear Transitioning to higher complexity generics normalization at Gagilapur following remediation and strengthening the quality systems holistically across all the facilities Strengthening our market presence across key geographies Scaling operations at GLS as regulatory milestones translate into commercial execution Building a differentiated peptide CDMO platform through SLS with rising innovator engagement, these pillars position us well for sustainable quality led growth.
For ease of understanding, we have broken down our portfolio strategy into integrated Rx ComplexRx and CDMO, the definitions and directions of which have been presented in our IR presentation. To conclude, this has been a strong quarter operationally, financially and strategically. We remain committed to building a high quality innovation driven global pharmaceutical enterprise supported by robust governance and a resilient multi site supply chain. With this, I now hand over the call over to Sanjay Kumar who will speak about our Peptides and CDMO growth platform. Over to you Sanjay.
Sanjay Kumar — Chief Strategy Officer
Thank you Chairman Sir. Good evening everyone. Let me briefly update you on the progress of our Peptide CDMO platform. Azelis peptides and CEN chemicals as anticipated, performance in the Q3 was modest but consistent with the transition phase we have discussed earlier. Having said that, Q3 was an execution and activity intensive quarter focused on executing key projects, increasing utilization and strengthening delivery readiness for the Q4. Also during the quarter Q3 we incurred high operating cost on account of planned maintenance activities and additional shifts towards the key customer project. The benefit of this increased activity are expected to translate as deliveries conversion in the next quarter, that is the Q4.
From an execution standpoint, Q4 is anchored on delivering key projects where work carried out over the last quarter is now moving into Delivery stage. Accordingly, Q4 is tracking towards a meaningful improvement in performance supported by ongoing project deliveries. Our focus remains on disciplined execution, predictable delivery and strengthening customers confidence. On the R and D front, we are seeing active collaboration between our Switzerland and India teams working together on live customer projects. After operationalization of our Peptide center of Excellence at IIT Heiselberg, the India R and D setup has begun contributing directly to the customer projects including development and execution responsibility.
The R and D team is also making progress on TSA C peptide chemistries, reinforcing our technology differentiation, particularly in the cosmetics segment. On the commercial front, our focus over the next couple of quarters is on progressing feasibility discussions with our customers, seeding samples with those select customers, particularly in A minus and derivatives and complex peptide fragments, and responding to the RFQs and the RFPs across the active pipelines. These activities are focused on building a conversion pipeline for the coming financial year and beyond the current financial the next financial year. With that I will hand over to Mukesh Surana, Chief Financial Officer who will take us through the financial performance.
Mukesh Surana — Chief Financial Officer
Thank you CMD and Sanjay. Let me take you all through key Financial Highlights for 23 FY26 Revenue the third quarter revenue were Rupees 13,879 Million as compared to Rupees 11,377 Million in Q3 FY25A growth of 22% and revenue sequentially grew by 7% as compared to Q2 FY26. Revenue growth was broad based with strong contribution of formulation business in North America and Europe. The sales breakup as per business division and geographic region are presented in our investor presentation which is available on the website. Gross Margin we delivered a gross margin of 63.9% in Q3 FY26 representing an improvement of 216 basis points year on year and decrease of 183 basis points sequentially year on year.
Gross margin improved with a better product mix with the finished dosage segment. EBITDA and EBITDA Margin EBITDA for the quarter was Rupees 3081 million, I.e. 22.2% of sales as compared to Rupees 2303 million I.e. 20.2% of sales in Q3FY25. Meaningful improvement of 196 basis point from Q3FY25 despite EBITDA loss of acylase peptides of Rupees 248 million quarter on quarter increase in EBITDA Loss of Acylase peptides due to regular and preventive maintenance taken up in December 25th at CEN Chemicals facility. EBITDA as a percentage of sales for Q3FY26 is improved by 75 basis points from Q2FY26.
The improvement in EBITDA was primarily due to sales growth and margin expansion. R and D R and D expenses for the quarter were Rupees 689 million. That is 5% of sales as compared to Rupees 568 million. That is 5% to sales in Q3FY25 and Rupees 705 million. That was 5.4% to sales in Q2FY26. We will continue to spend similar amounts to support long term strategic growth. Net debt. Our net Debt stood at rupees 10,151 million as compared to rupees 10,241 million in due to FY26 cash to cash cycle. Our cash to cash cycle has slightly improved to 202 days in the current quarter as compared to 204 days in Q2 FY26.
Net working capital as a percentage to sales was at 27% improved from 33% in the year beginning. Cash flow from operations Cash flow from operations for the quarter was rupees 287 million as compared to rupees 1937 million in Q2FY26. Capex spend during the quarter was rupees 1298 million as compared to rupees 2112 million in Q2FY26. ROCE ROCE for Q3FY26 is 16.8% as compared to 16.2% in Q2FY26. R.O.C has improved with the improvement in operating profit Quarter on quarter. With this I open the floor for questions.
Questions and Answers:
operator
Thank you, sir. Ladies and gentlemen, we’ll begin with the question and answer session. Anyone who wishes to ask a question may press star N1 on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star N2. Ladies and gentlemen, I request you to please use handsets while asking a question. We’ll wait for a moment while the question queue assembles. Our first question comes from the line of Krisha Tansara from Molecue Venture. Please go ahead.
Krishna Prasad
Hi. Am I audible?
Krishna Prasad
Yes ma’, am, you are.
Krisha Tansara
Yeah. So thank you for this opportunity. And I joined the call a bit late. So pardon me, is the answer to my question has already been answered in your opening remarks? But my question is on our Gagilapur facility. So in the last quarter you informed that we were going to meet the FDA in January month. So could you please update your investors regarding the same? Have we met them already? And if yes, could you please outline the next steps that we as a company are required to follow before we clear this warning letter? Thank you.
This is my question.
Mukesh Surana
Krisha. We had a meeting with the virtual meeting with the FDA early January and they have requested us for some more documentation which we submitting shortly. The most important part is the agency has not raised any concerns regarding the adequacy or pace of a corrective action. So once we submit our response and further information we will see what the FDA comes back with. But we are. That’s it. Yeah.
Krisha Tansara
Right. So would you be able to put a timeline to it? Like when are we expecting the final reinspection from there end?
Mukesh Surana
We cannot put a timeline to that but we will be submitting a response quite early in the very near future. But we’ll have to see how better agents what timelines they’re going to come out. Again like I mentioned, we have also been de risking. Some of the filings have been happening in our US facility and also at our GLS facility and some products are being site transferred to a JLS facility here too. Slight amount of de risking is happening. Even if it takes a little longer, it should not be a major problem.
Krisha Tansara
Right, Right. Okay. Sure. Thank you.
operator
Thank you. Our next question come from the line of Bino Pathira Mapil from Elara Capital. Please go ahead.
Bino Pathira Mapil
Hi, good evening. A couple of questions from my side. One, there is this 25 crore of loss from the Peptide franchise which you have given in the investor presentation. How has this moved across quarters from 1Q to 3Q and what is the outlook for the next few quarters? I think it’s a good idea. Sanjay takes his call. Sanjay? Yes. Responsible for the peptides business and anything regarding peptides. Yes.
Mukesh Surana
So the numbers are comparable to the financial performance of the previous quarter in terms of outlook. This is a typical of a CDMO business where the quarter to quarter variation happens. And as I covered as a part of my early commentary, while the financial performance was lower and as anticipated the quarter itself was activity intense and our projects progressed through the execution which typically take a couple of quarters and outcome of the last quarter will be reflected in the Q4 and we are expecting a very meaningful improvement in the Q4 performance and we do have a visibility over the next set of quarters and the numbers are significantly improved over the past two quarters on the revenue basis.
Bino Pathira Mapil
Understood. Just to follow up on that, when you say improvement in performance are you referring to a break even and a positive EBITDA sometimes?
Mukesh Surana
So yes, I exactly mean that and that is something that we covered in the last con call as well that we expected Q4 to go above the neutrality on the data that you asked. So we remain confident and we are on track to get to that position.
Bino Pathira Mapil
Q4 as in next quarter, right? This coming quarter?
Mukesh Surana
Yes, the current ongoing quarter.
Bino Pathira Mapil
Okay. And what will drive that? Is it transfer of manufacturing to India or additional projects that you have taken out? What is leading to this sharp turnaround?
Mukesh Surana
So I won’t put it as actively that like I would assume the lead time to execute these projects go beyond a quarter. So we did have the visibility on the execution timeline for this and we understood that those deliveries will happen in Q4. Again the quarter to quarter variation is very unique to the CDMO business. So we did have the visibility we were executing during the Q2 Q3 and we continue to execute through the Q4 and some of the key customer deliveries are happening in the Q4.
Bino Pathira Mapil
Understood. And can we also assume that it will remain in the positive EBITDA through the quarters in FY27 as well?
Mukesh Surana
So our target is always to turn positive from next financial years. But again I keep on saying the quarter to quarter variation will remain a characteristic of this business. But on a year basis we are turning towards neutrality and profitability for shims.
Bino Pathira Mapil
Got it. Thanks on that. And second, is there any cost related to Gagulapur facility remediation still sitting in the PNL in Q3? Yeah. Mukesh, decide. We know the remediation cost has substantially come down. So it will be in this normal levels for a few quarters and then will be negligible. It has come down substantially. Got it. And one last question on us. If I Look at your US revenues in terms, last couple of years we have added like 40 to 50, somewhere between 40 and $50 million every year to the US revenue. Is that something which we can kind of look forward to in the coming couple of years as well? That’s what we aspire for and we are confident of that.
Got it. Thank you. I’ll turn back to you.
operator
Thank you. Our next question comes from the line of Tushar Manudani from Utila Loswal Financial Service. Please go ahead.
Tushar Manudani from
Thanks for the opportunity. Sir. Just on this Atlas peptide, how much of the revenue would have been in this quarter or let’s say nine months.
Sanjay Kumar
So this quarter is 33 crores to share.
Tushar Manudani from
Okay.
Sanjay Kumar
And you know quarter on quarter, last quarter it was 28 and the previous quarter also around 28, 29. This quarter three, four crores higher and the loss has gone up which Sanjay also has clarified. I also clarified primarily we have taken higher execution activities both on the some of the active projects where the revenue will further come in Q4. And also we have taken up regular and Preventive maintenance costs, you know, in December.
Tushar Manudani from
So effectively that maintenance cost will reduce and then there will be scale up in the revenue. Which is why the EBITDA breakeven for ASIL is prepared type of thing.
Sanjay Kumar
You are right, yes.
Tushar Manudani from
Even if I leave aside or even if I ex. So if I exclude, let’s say revenue and the EBITDA loss with respect to the sls, the X of that business is also scaled up both in terms of the revenue as well as profitability. So how that piece of the business will improve subsequently? Maybe like fourth quarter onwards or in FY27. Given that the regulatory issue related expenses are actually at least largely behind. We might wait for inspection, re inspection for developing site, but except that how to think about the growth in the business in FY2D.
You can share some light on that.
Sanjay Kumar
Yeah, Tusha, we are looking at sequential improvement both on the sales and margin side.
Tushar Manudani from
And that would be driven by.
Sanjay Kumar
That will be driven by, you know, one expenses, operational leverage for sure and more than that, in fact revenue as well.
Tushar Manudani from
But this is to do with our, let’s say core products or the new approvals and which geographies, if you can give more color.
Sanjay Kumar
Tushar Priyanka, go ahead, you can answer that.
Krishna Prasad
Yeah Tushar, I’ll answer that. A few things is the last couple of quarters like we mentioned in our past con calls also we while we were producing, we weren’t producing to the full of our capability. So right now we are going to be increasing capacities and catering to all the awards that we have in the US and to the other markets. So just the operational efficiencies will increase, productivity will increase and that will certainly increase the numbers going forward. In addition, if all goes well with Godala Force, we’ll have our launches in place. That will also facilitate the growth.
We have a few CB30 approvals and some PAS approvals from the GLS side which we plan on launching. That will also facilitate growth.
Tushar Manudani from
Got it. That’s it. Thank you.
Sanjay Kumar
Thank you.
operator
Thank you. Our next question come from the line of Yashika Gogia from Nizar ent. Please go ahead.
Yashika Gogia
Hello, Am I audible?
Krishna Prasad
Yes ma’, am, you are.
Yashika Gogia
Yeah. Good evening everyone. So I just had one question. I wanted to gain some clarification on Libexa Setamine. What’s the product status? As we heard previously that GPI received the approval for the same achievable tablets in December 24th and then in January 25th the capsules. Is there any revenue recognition also? I just wanted to gain Some insight for mistakes?
Krishna Prasad
Yes, it’s been sure. It’s been four quarters since we’ve launched Liftex caps and tabs and it provides a meaningful revenue addition to our U.S. business.
Yashika Gogia
All right, so could you clarify some numbers or the revenue for the same?
Krishna Prasad
No, we don’t get into product specifics unfortunately, but I will tell you that we have. We were a late entrant to the market, but because of our quota history and our compliance history with the dea we were able to get meaningful share and we plan on increasing it as we keep going further.
Yashika Gogia
All right, so will it be feasible for you to tell how much incremental demand business signal. Since you mentioned that the quota for us, the quota for Lizdexa has been in 2 and in 24 it was around 26k per kg, whereas in 25 it was increased to 32k per kg and in September 19 also it was raised. So can we see any numbers from R and what benefit we can see?
Krishna Prasad
I’m sorry, can you please repeat your question?
Yashika Gogia
I mean to say that since Lystex Epitome quota was increased around September, it was announced by USDL that the quota has been increased from 24 to 25 and here approximately 40k per kg. So what incremental demand does this signal and does the industry have sufficient end market demand to absorb it?
Krishna Prasad
First of all, I’d like to clarify that without end market demand the DEA will not increase the quota overall for any product. So yes, there is market and based on compliance history of each company and the continuous outflow of products quarter on quarter based on legitimate demand and again I want to say based on the compliance aspect of that, the DEA awards quotas to the suppliers.
Yashika Gogia
That was my question. Thank you so much. Yeah.
operator
Thank you. The next question comes from the line of Ritvik Seth from Vanap Finn. Please go ahead.
Ritvik Seth
Hi, good evening sir. So, couple of questions. Firstly, sir, we’ve got an approval in principle approval for amphetamine product in December across two dosage form. And you mentioned the market size is 220 to $230 million per annum and we are one of the few players to get approval for this. So when can we expect the launch of this product in US and over a period of time, what kind of market shares can we garner?
Krishna Prasad
I’ll take that question. If you’re referring to the approval of generic Adzenf, it was a tentative approval. It’s not an approval yet because it is an IP based product. The overall value of the product right now, including the brand is about 170 million units. But there’s only one other generic player in the market. Market. So. But the timing of launch I cannot confirm right now because it is a tentative approval which is in litigation stage right now.
Ritvik Seth
Okay. And. And when do we get the final approval? If at all we get.
Krishna Prasad
Will take a year.
Ritvik Seth
Okay. It will take a year. Okay. And second question is on control substance. What kind of growth do you did we clock in Q3 and 9 months FY26. In this segment.
Krishna Prasad
I think we should start referring to this entire basket instead of just looking at controlled substances. I would urge you to just look at our investor presentation where we’re segregating our divisions into integrated pharma, complex generics and others. And within that, the definitions, etc. Have been mentioned in the presentation. But within the complex generics range itself, just from YOY growth Q3 to Q3, FY25 to 26, we grew from 27% as a total contribution to 49%. And Q on Q we grew from 40% to 49% within the complex generics range.
Ritvik Seth
Right. So control substance would be a significant part of the complex generics.
Krishna Prasad
Yes.
Ritvik Seth
Okay, got it. This is helpful. And just one last question on bookkeeping. So what was the remediation expense in Q3? FY26.
Mukesh Surana
So it has been substantially lower. Almost half of what we incurred in Q2.
Ritvik Seth
Okay, got it. Thank you and all the best.
operator
Thank you. Next question comes from the line of Sukriti D Patil from Eyesight Fintrade Private Limited. Please go ahead.
Sukriti D Patil
Good evening to your team. I have two following questions. The first question is as Granules continues to grow it. Sorry. As Grandview continues to grow its formulations and cram as business, how do you see capacity, use and overall production level changing over the next one to two years? In particularly, how will steps like making more of your own APIs, using automation in manufacturing and strengthening regulatory compliance be put into practice to improve efficiency, reduce production time and keep the company competitive in the global market? That’s my first question. I’ll ask my second question after this.
Thank you. Priyanka, go ahead.
Krisha Tansara
In terms of capacity utilization, if I understood your question right, we will be at Gagulapur. We will have some capacities over the next couple of quarters. But gls, we will have significant capacities. And more importantly, both the sites will have a lot of products in common. So if there is a lot of demand that we see going forward, we can cater to it from both the sites and on the operational efficiencies could you please repeat your question?
Mukesh Surana
They want to understand who, like, what steps will you take in, you know, making more of your own APIs, using automation in manufacturing and strengthening regulatory compliance to reduce production time and keep the company competitive in the global market. I think to answer your question, if it’s specifically about APIs, almost all the APIs that we make, we’re already very cost competitive. So when we talk about automation and digitization, digitalization, it’s more to increase quality compliance, to make sure that we are one of the strongest companies in quality going forward. And quality has always been a strong pillar for us. So that’s where we’ll be spending a lot of our resources with automation and, and digitalization.
Sukriti D Patil
Thank you. My second question, Let me clarify. Sukhra. Okay, the existing plant, there is a level of automation already. But any new plans that are coming up, including one API plan with a different type of differentiated technology in Vizag, this is going to be totally DCS driven and very few people on the site, so even that will happen in addition to paperless documentation. My second question is specifically to Mr. Mukesh. You know, with strong cash flows and ongoing expansion into CRMs and specialty formulation, how do you plan to keep EBITDA margin steady while also funding new investments? From a financial process point of view, how will you handle the working capital more efficiently, manage currency risk on export revenues and use digital tools to control costs so that ROE and balance sheets remain strong in the near medium term? Thank you.
Thank you. It’s a multi loaded question. EBITDA improvement of course, you know, with a good mix of formulation getting into larger complex generics, the EBITDA margin of course gross margin to EBITDA margin will continue to improve and thereby of course cash flow from operation will be positive quarter on quarter. At the same time with the increased sales, there will be investment in working capital. At the same time we are seeing that, you know, how we study state at her CCC days, even with the new launches and increase in inventory requirement, how we efficiently manage the CCC days so that working capital blockages lesser with the growth as well.
That is a continuous process which we do and we do have on the forex side which you have asked. We have a good risk management governance and we balance hedging also accordingly. And if you see all of these processes are effectively managed, that’s how you see ROC is improving and return on equity is also improving. Quarter on quarter with a business improvement. Thank you for the guidance and I wish the entire team best of luck for the Next quarter we don’t give guidance. It’s all going to be positive. That’s all we can say. No guidance.
Thank you. Thank you and rest of luck for the next quarter. Thank you.
Mukesh Surana
Thank you.
operator
Our next question come from the line of Abu Rafe from Weld Catalyst. Please go ahead.
Abu Rafe
Thank you, sir. Thank you for giving me the opportunity. So my question is. Earlier management had indicated that paracetamol demand was weak due to elevated inventory. Could you update on the current inventory situation? Has the excess inventory largely been cleared, Sir? And how does the management view the demand outlook for paracetamol over the next few. Priyanka, want to take that?
Krishna Prasad
Sure, I can take that. Paracetamol as an absolute. If you talk about the inventory situation in certain markets, they have eased down and we are seeing an increase in demand from our key customers in both APIs, PFIs and finished dosages. While we are seeing good growth and that’s what facilitated the growth in some of our regions this quarter, we do see some amount of price erosion also in paracetamol. But in terms of inventory, the volumes are building back up.
Abu Rafe
Thank you, ma’. Am. Thank you. That’s. That was my question and thank you very much.
operator
Thank you. Our next question comes from the line of Vivek Gupta from Star Investment. Please go ahead. Mr. Gupta, you may please proceed ahead with the question. Yeah.
Vivek Gupta
Hi. Am I audible?
operator
Yes, you are.
Vivek Gupta
Yes. So could you outline the expected timeline for meaningful product launches from the Genome.
Sanjay Kumar
Valley facility and like share your estimates on the incremental revenue contribution that is anticipated in FY27?
Krishna Prasad
I’ll take that question. Yes, we are going to be launching at least one product, if not two products, which are existing products from the GDP site to cater to additional demand that we have. So these two products will be launched over the next couple of next 2/4, 1-2/4 where we start this quarter. And we’ll see an incremental revenue coming up. And we’re also expecting once we have a European approval for that site, then we expect even more numbers to come in.
operator
Okay.
Vivek Gupta
Okay. So with oncology and high value segments positioned as key long term growth levelers, how do you plan to scale capacity, build partnerships and you know, progress regulatory fillings to unlock their potential.
Krishna Prasad
So if you look at the three baskets that we have mentioned in our investor presentation sequentially, even if you look at the RD filings in order of, in order of how they have changed over time, you see that the, the percentage of complex genetics, which is where oncology, CNS and other Products come into play, they have sequentially grown. So we plan on filing a certain number of products more inclined towards complex genetics in the future, while integrated genetics remain a core area of focus as well.
Vivek Gupta
Okay. Okay, thank you. Thank you so much.
operator
Thank you. Our next question comes from the line of Sania from SSC Capital. Please go ahead.
Sania
Hello. Am I audible? Yes.
operator
Yes, you are.
Krishna Prasad
Yes, you are.
Sanjay Kumar
Hi, good evening.
Sania
Actually, I joined a little late that I had a question regarding that the.
Krishna Prasad
Control substances that are emerging. As a keyboard diver, he grow driver.
Sania
In the US market, could you provide us greater visibility on the pipeline, like. The outline, the expected launch timeline and can you share how the management anticipates this product will contribute to your earnings for the next two, three years?
Krishna Prasad
I’ll take that question. Also, when somebody, I’m sorry I forget the name, but somebody spoke to me about it in the past couple of minutes, I mentioned that we should look at it as integrated generics, complex generics and others. So cns, ADHD and controlled substances are a part of the complex generics range. We have about eight to nine products in the market, five to six of which are amongst the top three, if not number one, in the market today. So going forward as immediate launches, well, immediate launches, meaning within the next year, year and a half, we have about three launches and they will three to four launches and they will contribute to a very meaningful percentage of our overall growth story.
Sania
Okay, got it. And also regarding this tentative approval for.
Krishna Prasad
Amphetamine, could you please elaborate on the strategic importance of this molecule, particularly in the terms of potential revenue contribution? And I don’t want to. Yeah, I can’t. Sorry. Please finish your question.
Sania
No, no, no.
Krishna Prasad
It is a very important, very, very important product for us from a strategic perspective because it reinforces our strategy of filing limited competition products to be able to get. To be able to give patients with ADHD immediate access to products by launching genetics that are early to the market. And from a manufacturing and development perspective, these are difficult products. These are products that some of the products have been in the market, but this particular product, well, there has been one generic for a long time, but others have not been able to develop, file and get approval for this product because of the complexity involved.
So overall, it is a very good product that fits exactly within the pipeline that we have emphasized for ourselves and it will contribute to a very meaningful amount going forward.
Sania
Okay. Okay, got it. Thank you and best of luck.
Krishna Prasad
Thank you.
operator
Thank you. Ladies and gentlemen. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. As there are no further question from the participant, I would like to hand the conference over to management for the closing comments. Thank you. And over to you, management.
Prachi Ambre
On behalf of the entire leadership team, I would like to thank all our shareholders, analysts and participants for taking the time to join us today. We value your insights and your continued trust. This brings our call to a close. Thank you and have a wonderful evening.
operator
Thank you, sir. Ladies and gentlemen, on behalf of MUFG Investor Relations Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.