Gufic Biosciences Limited (NSE: GUFICBIO) Q1 2026 Earnings Call dated Aug. 14, 2025
Corporate Participants:
Unidentified Speaker
Ami Naresh Shah — Company Secretary and Compliance Officer
Avik Das — Investor Relations Team
Devkinandan Roonghta — Chief Financial Officer
Pranav J. Choksi — Chief Executive Officer
Analysts:
Unidentified Participant
Bhavya Sonawala — Analyst
Kumar Saurabh — Analyst
Nitya Shah — Analyst
Shubham Selvadia — Analyst
Akshay — Analyst
Yash Tanna — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Goofy Biosciences Ltd. Investor call for Q1 2526. 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 the conference call, please signal an operator by pressing Star and then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Amish Shah. Thank you. And over to you ma’.
Ami Naresh Shah — Company Secretary and Compliance Officer
Am. Thank you so much. Good afternoon everyone. I miss Amisha, Company Secretary, welcome you all to Goofect Biosciences Limited earnings conference call for the first quarter of FY2526. We have with us today for the call Mr. Pranav Choksi, CEO and Director, Mr. Devki Nandan Rumta, CFO and Mr. Avik Das from Investor Relations team to give the highlights of the business and financial performance of the company. Before we begin I would like to say that some of the statement would be forward looking and today’s discussion may include projections or estimates about future events. This estimate reflects management’s current expectations about future performance of the company and this estimates involve a number of risks and uncertainties that could cause our actual result to differ materially from what is expressed or implied.
Mufiq does not take any obligation to publicly update any forward looking statement whether because of new confirmation, future events or otherwise. I hope you all have received the investor presentation that we have posted on the stock exchange website and on the company’s website. I’ll now hand over the call to Mr. Avik for sharing the business highlights. Thank you.
Avik Das — Investor Relations Team
Thank you Amy. And good afternoon everyone. Thank you very much for joining our call. As always, I’ll start with a quick overview of all our business units and divisions and even before that I’ll bring you all to speed of our developments at Indore. So over the past year a significant portion of our efforts has been invested in bringing the indoor facility from build to which is a benchmark facility. Today this facility is one of our most advanced in terms of lifeline injectable capability. It’s been designed to meet who GMPHRA as well as the US FDA standards.
Since October 2024 our focus has been on a deliberate stepwise qualification process starting with equipment qualifications and subsequently even our utilities qualification performance qualifications which we’ve done it with multiple container formats and then we’ve done a full aseptic process simulation across all four lines. These stages were critical to ensure sterility validation and long term compliance readiness. On the product side, we have secured almost 145 state FDA approvals to date with additional products in the pipeline. On the tech transfer from Navsari side which is well underway, we’ve already completed nine lipolyzed injectable products, three liquid products and three ampoule products and another eight are in on the process as we speak.
This shift is also freeing up capacity at Unit two for exports while in lower sites take the low side takes over our domestic CMO work and begins to build its own commercial momentum. In terms of vendor audits from leading Indian Pharma majors, we’ve completed 15. We have some more lined up in this quarter and this of course will be an ongoing process. We’ve also explained in a timeline of how we see the indoor plant shaping up in the coming quarters and years. One of the key milestones will be the Global Regulatory audit which we hope to receive from the EU side and EU and UK MHRA side by Q1 of FY27.
US FDA of course will be triggered by client timelines as Kufic is a pure play CDMO partner for the US foray. Looking ahead, our roadmap is very clear. We reach 30% capacity utilization in FY26 which is the current year breakeven on EBITDA for indoor in the same year and position indoor as a margin accretive asset. From FY27 onwards the focus will remain on discipline scale up, ensuring every stage of qualification, tech transfer and audit readiness is completed to global standards before accelerating volumes. Now I’ll take you through the key updates in our divisions. I’ll start with Critical Care division.
In Critical Care our direction remains focused on deepening our position as a trusted hospital partner through scientific engagement and therapy leadership. This quarter we’ve used various national scientific platforms not just for presence but to shape clinical discussions especially in invasive fungal diseases, antimicrobial resistance and stewardship and sepsis management. The intent has been to strengthen our reputation in high science high dependent segments. On the portfolio side we’ve begun refreshing the anti infective baskets with differentiated combination launched immediately post patent expiry. On the Innovator this is this particular product is targeting resistant pathogens while also promoting rational antibiotic use.
The emphasis is on strategic need based introductions of new products that add value to clinicians rather than volume driven launches. On Sparsh is undergoing a strategic shift under new leadership to drive deeper penetration in hospital accounts and widen the breadth of iscience offerings while near term growth will come from proven products like dual chamber bag. The medium term strategy is anchored around entering new hospital categories such as contrast media and come up with next gen critical care injectables like Albumin. We are going through the development and regulatory approval process for these and testing for these products.
The division is also investing in building a stronger corporate positioning with larger hospital groups by bringing certain changes in our distribution methodology. This will shorten sales cycles and improve customer retention on the entire vertical cluster. Under strengthened leadership and with an upgraded portfolio, Vertigar is now focusing on sharper scientific positioning, improving field productivity and very selectively introducing differentiated therapies in reproductive medicine. A key highlight this quarter was the launch and scale up of our immune therapy for recurrent implantation failure. This is the first such therapy in India addressing a highly specific and challenging patient segment in IVF on our core brands which are progressing well.
Pure Graph, which is our flagship Gonabotropin offering is on track towards 25 crore annual run rate. Setrocare is moving into the top three in its category. Coopagraph, which is positioned directly against an innovative product is targeting 15 crores within two years of its launch. Duficin Alpha is on course for 10 crore annually and our legacy brands like Nitrofic Lomok continue to post steady growth over the coming quarters. Our focus will remain on deepening our relationships with IVF specialists, scaling first to market therapy offerings and expanding the portfolio to capture greater share of clinician spend. Now I’ll come on our Toxin segment.
I’ll start with Astiderm. We are building on our strong base in the therapeutic and aesthetic Botulinum toxin by broadening into more complete aesthetic portfolio including fillers, skin boosters and biostimulators which was a key gap in our product portfolio in that segment. This approach expands our clinician reach, engaging practitioners who may not currently use Toxin and creating a progression pathway towards adoption of Toxin. The result is a larger, more diverse customer base and long term cross category potential so we made efforts to accomplish this. In the first quarter we advance in licensing discussions for one of world’s top fillers biosimulator brands to accelerate market entry and enhance our portfolio in India, Sunops continues its sustained growth momentum.
We are already number two in India, only second to the innovator of the product. We are also strengthening our footprint in Tier 1 and Tier 2 aesthetic markets via very targeted clinician network expansion. On the Neurocare division, Neuropare continues to focus on expanding the therapeutic botany, toxin usage beyond just core neurology into neurosurgery, neurology, ophthalmology and pain management. The emphasis is on category building, driving adoption through skills training, presence in various scientific initiatives and targeted specialty outreach. The aim is to gradually increase the user base familiar with therapeutic toxin application leading to, we hope, a very sustained prescription retention.
Now coming to our mass market specialties, I’ll start with Healthcare division. In Healthcare our strategy blends brand leadership in established segments with differentiated innovations. Palakia and its extensions remain the leader in joint care positioned as a pure pathway rather than just symptomatic release. Resolve continues to grow in the antidiarrheal category. The Ayurveda approach which is combining traditional formulations with modern evidence, underpins launches like Goofy Can Oil Goofy spawn in very niche markets and strengthens are we also have a good wound healing product in this portfolio. Here we’ve added Bonaprazon as well and we are seeing good early traction with this molecule as well and we hope with this entire portfolio.
The target market is pretty big and pretty niche and we hope to gradually make inroads into that. Coming to Zenoa Zenoa’s focus is on strengthening engagement, the point of care in gynecology and expanding a high science women’s health portfolio. The patient support programs are also designed to build trust and preference at the prescriber patient interface which is the clinics and upcoming differentiated launches in pain management and fertility related antioxidants will broaden our relevance in reproductive health. The intent is to sustain the kind of growth that we’ve seen while gradually rebalancing the portfolio mix towards higher margin segments and which is visible in the Rx to injection ratio are now moving favorably towards Rx in this division.
Lastly, I’ll update on the international business in our slides we have presented the current market size of select molecules in which we have complete dossier readiness. These are products of course developed and already approved and being sold to some of these markets from Navsari unit 2. Indore will add its own set of products to this as well in time to come. We are targeting a 3 to 5 year horizon to capture 5 to 10% market share across these high potential molecules in the identified market. As shown in the presentation, the addressable total addressable market is US dollar about 824 million.
Current manufacturing for these molecules is undertaken at our eu GMT Approved unit 2 at Navsari with subsequent options to manufacture these at indoor facility as well. The indoor plant will not only debottleneck capacity at Yume 2 Nosari but also expand this basket with additional products which will add to the addressable market in future. Export momentum is already visible supported by opening up of unit 2 capacity at Nasari through tech transfer to Indore and gradual relocation of domestic CMO business to Indore. Early wins reinforce our execution capability of this strategy. Something that I’ll highlight here is the UKNHS Tender Award which is already being serviced from unit 2 Navsari in the current financial year.
So with that I wrap up the business updates for Q1 and now hand over the call to Mr. Roomda for update on the financials.
Devkinandan Roonghta — Chief Financial Officer
Thank you. I will going to highlight the financial performance for Q1 of 2526 versus the Q4 of 2425. I am not able to compare the Q1 of 2425 versus Q1 of 2526 because of the Q4 of 2425. So I am making a comparison of financial result of Q1 of 2526 versus Q4 of 2425. The total revenue from the operation from Q4 of 2425 was 205 crores where Q1 of 2526 is 226.969 crore. It is basically because of the startup of the indoor facility. The EBITDA in Q4 of 2425 was 27 crores. In Q1 of 2526 was 33.2 crores.
The EBITDA margin in Q4 of 2425 was 13.17%. It has improved in Q1 25252526 to 14.63%. The profit before tax Q4 of 2425 was 10.8 crores. Q1 of 2526 was 16.3 crores. The PAT margin in Q4 2425 was 5.27%. In Q1 for 2526 is 7.8%. The profit before tax. The Q4 of 2425 was 8 crores whereas the Q1 of 2526 was 12.1 crores. The pack margin in Q4 of 2425 were 3.9% whereas Q1 2526 is 5.33%. Thank you.
Ami Naresh Shah — Company Secretary and Compliance Officer
Sakur. We can now begin with the Q and A session.
Questions and Answers:
operator
Certainly. Thank you. 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 touchstone 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 again. To register for a question, you may press star and then one. Our first question comes from the line of Bhavya Sonawala from Samasa Capital. Please go ahead.
Bhavya Sonawala
Yeah, hi. Thank you for the opportunity. Just a couple of questions. Is it possible to give kind of a number on what kind of revenues have come in this quarter from the indoor plant?
Pranav J. Choksi
Yeah, so if you see Vavian last time also in the last call, I think Navsari was more or less saturated in the entire year last year in terms of unlocking any revenue there. So whatever increase you see, you know, around close to 25 to 26 crores, is mostly at the benefit of Indore.
Bhavya Sonawala
Okay. No, so where I was coming from, I just wanted to understand, has there been any. You know, we have been spoken about critical care having some products having price erosion. Has that continued or have you seen some kind of stability there?
Pranav J. Choksi
Yeah. So in critical care, the price erosion has stopped. There is no further price erosion happening in critical care as of. Hello? Am I audible?
Bhavya Sonawala
Hello? Yeah, I can hear you.
Pranav J. Choksi
Yeah. So there is no erosion of critical care pricing in the last. This quarter, April to June.
Bhavya Sonawala
Okay, understood. And just a last question. The tech transfer that we are seeing from Navsari to Indore, what timelines are we seeing for the whole thing to be completed and when can we see some revenue starting from those transfers? So that I think then the plan is for Navsari to start exports because we are already of existing products. So if you can just throw some light on that.
Pranav J. Choksi
Yeah, so basically the tech transfer will be an ongoing thing. As I mentioned, there are more than 15. Some of them have been completed, some are ongoing. And there’ll be more and more tech transfers happening of products where we know for a fact the capacity constraints are there. More importantly, the products which we are seeking for tech transfer now are two things. One, which we know for a fact will have a global impetus on a higher batch size. When we export abroad, there is a QT release cost. So when the batch size is around 40,000 per batch in Navari, here in Indore, we have 100,000 batch size.
Those are the candidates which we have taken for our tech transfer in phase one, followed by. So those products which are relevant in the domestic market in terms of CMO as well as a critical care and infertility space, those products are also being considered for drug transfer down the line. Once these products are done There are also tech transfers which will be done by our Both the R Ds of Indore and Navsari also directly to Indore because of less products like Daptomythein and you know, propofols and the depot injection. So those also will be continued.
So the process of tech transfer be ongoing but will be new and new molecules coming in. Answering your second question, I mean answering your fourth question in terms of when do we unlock the exports? So we already have lined up, we already have done the application of EU GNP at two different, I would say geographies. So we are hoping at the slot either either end of the year or early next year. So once the EU gets approved, hopefully by Q1 27, as we have mentioned in the presentation, we will be immediately starting the exports from that apart from EU of course, other markets like you know, Southeast Asia or you know, even for that matter Africa countries.
Ongoing audits are planned in the next three to six months to those. So I’m hoping to pledge by December or by early next year we should see exports also being initiated from Indo.
Bhavya Sonawala
Got it. Thank you so much. That’s all.
operator
Thank you. Our next question comes from the line of Kumar Saurabh from Scientific Investing. Please go ahead.
Kumar Saurabh
Yeah, hello. Hope I’m audible.
operator
Yes sir, please, am I audible?
Kumar Saurabh
Yeah. Okay. Sir, this year FY26 we have planned for 30% capacity utilization. So correctly our assumption is by in next four years this whole plant and 800 crore of additional revenue should be possible in four years. That is one. And the other question is when do you see operating leverage playing out in favor? Because right now we will have expenses at employee level and other expenses level which is also visible in the current quarter. So what is the capacity utilization level at which you can expect the margins to you know, reverse for upward journey?
Pranav J. Choksi
Yeah. So I’ll comment about the capacity utilization and then I’ll request to comment upon the margins. And I think he already has mentioned about it being EBITDA positive by the end of the year. But I’ll ask him to elaborate on that further. In terms of capacity utilization we already are on around 18 to 20% in Q1. We foresee that. And I’m talking of course about the lyophilization capacity, liquid and ampoule. We hope that by, by around October or November we should be close to 20 to 25%. But by the end of the year or maybe by November, I mean by the third quarter of this financial year we should be around 30% and maybe beyond also.
So that Is where we foresee that the capacity consumption will happen. And based on that we have a prediction that we should be taking even in EBITDA this year. You want to add anything on this, sir?
Devkinandan Roonghta
Yeah, I will just add it sir.
Pranav J. Choksi
Yeah.
Devkinandan Roonghta
Sir has already mentioned the capacity utilization has reached to 18 to 20%. But there are certain capacity which has been utilization for validation of the batch. So capacity utilization is depending upon how much we sell to the market. It’s also include the validation. So once the capacity utilization reach around 25% only for sale that moment of time we are expecting the EBITDA will be break even. And if we reach the capacity utilization around 35% that moment of time we will able to recover the interest and depreciation cost also.
Kumar Saurabh
Got it, sir. And four years is it a fair estimate? I mean given businesses.
Devkinandan Roonghta
It’s too early to comment on this because we are in the process of how much time validation batch will going to take. How much time the US FDA is going to take the permission? It’s too early to comment it. I’m not in a position to say that after four years it will be we will able to risk to 800 crores or not.
Kumar Saurabh
Okay, okay. It’s the second question is on the cash flows off late the better to cash flow conversion has not been great. And I’m sorry, I’m new to the company, I’m still studying. But one of the reasons have been the Sparsh project. My understanding was because it helps us direct connect with the hospitals. It should help us even to better the operating cash flows. So if you can explain little bit on why EBITDA to cash flow in last 12 years has not been like how we used to do in history. And is first project having any impact on that.
And what is the future plan on that to improve the EBITDA to cash flow conversion?
Pranav J. Choksi
I think I’ll answer just about this first program and then you can definitely comment on the cash flow and the. Bit will be recorded. Hello?
Unidentified Speaker
Yeah, sorry, this call is no longer being recorded.
Pranav J. Choksi
Can I continue? Is there some issue?
operator
Yeah, you are audible.
Pranav J. Choksi
Yeah. Okay. So sparse. I think like we clearly mentioned was a clear cut division launch to increase the margins between have. So if you see overall the margins which were there of Goofix some years ago were close to around 48 to 50% now at least we have been able to increase it to around 54 to 55% year over year in spite of the erosion of pricing happening. So Sparsh was done that we of course try to go to the. There are two purposes not only for margin improvement but also that we have a control of our predictive business in terms of the primary, secondary as well as tertiary hospitals.
So we know actually what is the buying patterns, what molecules in what geography and what hospitals are interested in what products specifically keeping in mind that particular area and geography as well as economic background. So that is where the thing was and we expected more of margin improvement. But always when you know that whenever we try to go, go for the direct approach. The hospitals in India unfortunately have a habit of paying almost after 120, 150 or sometimes even 180 days. And that is something which we were recalculating. So there might be an approach change down the line maybe in the next three to six months.
And that’s why there has been leadership change also in spurs that even though numbers and silver happening the cash flow was little bit of course, you know, stretched especially keeping the debtors in mind and also the inventories also. So we would be maybe going back in the next three to six months back to the CNF model where we again get the. What do you call the distributors in place where at least our collection and our. I would say outstanding which is currently around 120 to 150 days in that division comes back to that 45 day average.
But it’ll take time but it’s worth exploring. So that will be my comment on sparsh. I think you can comment about the data and the cash.
Devkinandan Roonghta
Basically if you see the cash flow has been basically our inventory are almost maintained around 215 crore. There has been increasing in the data because of the after Covid the general in generally previously before COVID we are getting the payment average in 90 days. But after Covid the payment circle has been increased by almost all the people from 190 days to 130 days. So that is one of the major change in the payment circle time. And second thing, because of the increasing in the sale of indoor plant we expect there will be additional requirement of the working capital.
So the working capital requirement will be under pressure from this current year because of the indoor picking up.
Kumar Saurabh
Got it sir, got it. That’s it from my side and sir, I really have gone through the previous conc. I really like the disclosures and the transparency with which you know you update irrespective of something good, bad, positive, negative. So really looking forward for next quarter. Thank you.
operator
Thank you. Before we take the next question, a reminder to all the participants. You may press star and then One to ask a question. Our next question comes from the line of Nitya Shah from Kamayakia Wealth Management. Please go ahead.
Nitya Shah
Hi sir. Am I audible? Hello.
operator
Yes sir, you’re audible. Please go ahead.
Nitya Shah
Yes, my question was now I’ve been a shareholder for quite a few years so I’ve seen that the revenues have largely ranged between say the 190 to 200 crore range and now we’ve shown a 10% growth. So looking at the various segments, so there’s a lot of innovation and interesting, exciting segments in the company. But why has the top line not been reflecting all these changes in the sense that you know, you surveyed around 8,000 hospitals. There’s lots of interesting feedback as was seen in the presentation. But why is this not flowing into the revenue numbers? Like when will we start seeing like strong growth of say 20% year on year? Like now we’ve reached 10%.
So just could you throw some light on other than the indoor products like all your other therapies, what’s exactly happening there and when can we see, you know, material change in the numbers due to that?
Pranav J. Choksi
Yeah, Nithya. So as you know, 50% of our revenue comes from the domestic market and then from CMO and then from exports which are the major three parts. Further if I go below, after 50% around almost 50% comes from critical care which comprises of critical care separation, overall setup and then 30% from infertility and the remaining would be from mass marketing. So till if you see the numbers which have evolved From I think 690, 800, 800 and then whatever comes this year we especially last that 690 to 800 was one jump and then 800 became flat at 800 because of two reasons as I mentioned last time.
One was of course the erosion of prices which was to the tune of 122. But more importantly that capacity was the biggest concern which we faced. And because almost the indoor project was delayed by six to eight months, almost nine months we had and because of the introduction of the new validation, the revenues almost got pushed ahead. At the same time there was a heavy order book which was got bloated in the meanwhile. So unfortunately in pharma as you are aware, we cannot just, you know, start a plant and start manufacturing immediately. That there is a process of three batches, sorry, tech transfer, analytic method transfer, the validation, then stability.
Then once the stability is okay, then you know, your QA allows to take the batches ongoing. This process which was actively started by October 2024 is throwing some light and that’s why you have seen a 10% sort of uptrend in revenues in Q1. We hope that this 10% should further definitely increase in the quarters to come. Because more and more capacity will be unlocked from Navsari to Indore. At the same time I mentioned that there is no further erosion of prices which is happening in our major category that is CMO as well as critical care and Sparsh.
So there also we see that we have bottomed out last year in terms of price erosion. And we foresee that there would be no other impact of that coming in this year. So the natural progression, the natural growth of those divisions coupled with the capacity unlocking from from Navsari to Indore would help us achieve the numbers you desire. But in a step by step manner.
Nitya Shah
Understood. So currently a branded business, partial selling your own medicine. What part of revenue has that become around about?
Pranav J. Choksi
It is around 55 to 56 crores on annually. That is partial. Critical care is of course the highest one which around 22.220crores.
Nitya Shah
So where do you envision Sparsh reaching in say the next two to three years? You’re at say 50 crores annually. What’s like the internal targets?
Pranav J. Choksi
Internal targets would be close to 100. Okay.
Nitya Shah
In the next two to three years.
Pranav J. Choksi
Two years. Two. Three years. Yes. Okay.
Nitya Shah
And would you give a guidance of some sorts that in CFY 26 you touch around thousand crores of revenue. Looking at the capacity localization and increase in other segments.
Pranav J. Choksi
I would love to put a number on it. But yeah. Efforts are fully on to reach that magical figure as soon as possible.
Nitya Shah
Okay, understood. That’s it. From my side. Thank you.
operator
Thank you ladies and gentlemen. As there are no further questions from the participants I now hand the conference over to Ms. Amisha for closing comments.
Ami Naresh Shah
Thank you very much for joining us.
Avik Das
There is one question. If you want we can take it.
operator
Sure. We have the last minute registration coming from the line of Shubham Selvtia from Tikri Investments. Please go ahead.
Shubham Selvadia
Congratulations sir. On a good set of number. Sir, I just wanted to know the. Volume growth which we have earned during the quarter.
Pranav J. Choksi
If I understand your question right. Volume growth would be the total number of vials and capsules and tablets.
Shubham Selvadia
No sir, in percentage terms like what last during quarter four of FY25 and a quarter one of FY26. So what is the volume growth?
Pranav J. Choksi
Very frankly it’ll be very difficult for me to comment on that. I’ve not normally we take it molecule to buy molecular. We take Division by division or as a company I will not be able to give you any molecule growth. But at least we know.
I can just add that our mostly facility in Navsari was saturated. So Indore is the additional volumes which we have obtained like I mentioned 18% so around I would say 18% of 18 lakh wiles on including ampoules is the capacity which we have unlocked in the last three months. So that would be additional I think from April to June. Again it’s a good question. Sorry, I’m a little bit. I’m not able to give you the exact number. I’ll get back to you. I’ll take your details and I think we’ll Avik or Ami to get back to you with these details specifically.
Shubham Selvadia
Okay sir. And sir, what percentage of the revenue. Is coming from exports?
Pranav J. Choksi
I think according to me the export would be around 20, 2022 percent for the increasing this year. But is that the right understanding?
Avik Das
Yeah. Yeah. So this out of 800 crores of sale. 820160 crore was revenue from last year. 2425 it is around 20 in Q1 also 53, 53 crore out of 2 Ranzing is around 2018. Around 20%.
Pranav J. Choksi
Yeah. All right. So I think around 2022% is the export revenue.
Shubham Selvadia
Yeah. Okay, excellent. What is the revenue breakdown from each division? Sorry, go ahead.
Avik Das
You can see that our segment is only one segment. So we will not be actually legally liable to give any information of the. In the interest of the competitive. To give us the breakup of segment wise details of all the sectors. We just broadly said you that total our business is 50% is domestic sale. The 30% is 20% is export. 2025 is CMO sale and remaining is API sale number we will not able to share because of the competitive risk. If you. If you. I just understand and just to addition to what said in the last two conversations, just I think five to seven minutes. I given a broad percentage of the domestic mass marketing, IVF and critical care also. So I think you’ll get the detail there. Yeah.
Shubham Selvadia
Okay sir. Okay. Thanks for your answer sir.
operator
Thank you. Our next question comes from the line of Akshayo from Niveshai. Please go ahead.
Akshay
Yeah. Hello sir. So I’ve been following a company in progress for a while. But this quarter we’re seeing a good amount of margin stability and margins have started to you know come back to a little bit of the normalization. So can we expect that this should be maintained going forward now that the indoor plant has started to accrue revenues as well.
Pranav J. Choksi
I think actually I’m mostly talking about gross margins. Right.
Akshay
No, I’m talking EBITDA actually.
Pranav J. Choksi
Yeah, rightly replied. I think the issue it would be just encashing on the assets which we just invested. You rightly said once indoor because you know there’s no further erosion happening in pricing. So once indoor of course comes and takes the load of course of the company, we hope that these margins should improve. Yes.
Akshay
Is it right understanding now that the nursery plant would also start to get more freed up? Because. Because. But as the tech transfers keep on happening, more of the sales will start to happen from the indoor plant. So nursery would also the bottleneck that was happening in terms of validations etc and just could you say, you know, a lot of the sales were stopped also so that capacity would also start to accrue to sales.
Pranav J. Choksi
Yes, absolutely.
Akshay
Okay. Okay. So that way it is not just the new indoor plant. Right. Then Nasari would also start contributing more because the util would be towards sales.
Pranav J. Choksi
Yeah, absolutely. So there would be some domestic business and CMO business moving to Indore and that would help us to open up certain, you know, export opportunities from Navsari where of course the margins also would be driven. So yeah, you rightly said it’s both the factories more importantly contributing to our growth going forward by amortization of capacities. Yeah.
Akshay
So for the SARI plan then how much we can say as of now that’s been utilized for, you know, the tech chance. I don’t think the tech transfer would necessarily stop business. But you know, just capex side say from what I can understand because I remember you were at 80, 90% capacity already there even more because validation batches were also ongoing for various products. So now what would be the free up that has happened from there?
Pranav J. Choksi
There’s absolutely no free up because the more and more like I said, the order bookup, I mean the order thing is still there, order book is still there, bloated. So we are trying to get all those things done. So we I hope we never reach work on you know, level where you know, we see now sir is now 2030 free. We hope it continues at that 80, 90%. And of course Indones starts feeling more with this amortization also. So that is the thoughts process going forward.
Avik Das
Just to answer that actually one minute. It is not that you know that Navsari the bottleneck caused under utilization of capacity. It’s just that the product mix and the market mix will evolve from Navsari even though the output may remain same which could have some positive delta subject to no price erosions in API. So just to clarify that understanding. Sorry for the interview.
Akshay
No, no, no. Please feel, please feel free to tell me more. That would always be great. You mentioned Astroder also we’ve added more products, right? Filler boosters and bio simulators is something that you’ve added along with Stunu to give like a more holistic portfolio. They can expand more.
Pranav J. Choksi
No, I think what Avik meant was. And that we are in the process of in licensing international big brand who has of course fillers and bio boosters as well as other aesthetic cosmetic options which further strengthen, I mean strengthen and fortify our basket surrounding Stenox. So we hope that with that tie up maybe in Q3 or by Q4, let’s be more realistic, maybe by Q4 we should get an additional benefit benefit of sending Stanox further with the help of these pillars and you know, other products also. So that’s what I think he meant in the thing in the history.
Akshay
Aspirations for this because as they rightly said the turnaround that’s happening especially due to just awareness of these procedures and they’re becoming more and more available even in tier 2, tier 3 cities. So where is like where are we with the marketing side? How deep has our reach been? How we have grown here?
Pranav J. Choksi
So if I, I’ll answer this question and with a. And I’ll end up with a question for you also. And you can maybe tell me your feedback also. So we in India always feel that the consumption is increasing and we, we also. And of course that’s why you see that our numbers, the way the toxin is increasing and the acceptance and awareness is there. We are still waiting for that hockey stick figure. And that is where when the actual consumption and the actual expenditure of all the people in India free up. So we feel that let’s say an out of pocket expenses of an average Indian consumer, both male or female on aesthetic and cosmetic space which would be around maybe 3,000 to 5,000 rupees.
I’m saying average, I’m not going to socio economic status. I’m seeing the one who are relevant and who pay for that. Even if that goes from 3 to 5,000 to 7 to 9,000, that’s still not good enough. The thing would come when the average Indian consumer, even if we look at that strata comes to an average of around 18 to 25,000 rupees per month expenditure. That is when the hockey stick will come in. So we still as a society in India have to evolve. Of course we are growing and we see the number one, if you expect the ones like, you know, like even forget the US and the Koreas and all that of the world, but even if you expect the Turkey and the Thailand and even the Poland and the Russias of the world, where we compare, you know, they are, I would say, adaption of cosmetic procedures.
As to India, we are still lagging far behind. But of course we hope that we make a difference. We try to bring the awareness we all, I mean, when, I mean all the entire cosmetic pharmaceutical as well as aesthetic industry tries to make it more. And then of course, like I said, I would like to ask you as a consumer, how do you feel your Delta has evolved in the last three years? Have you started spending five times or even three times what you used to spend or still not?
Akshay
Yeah, absolutely. I mean, it hurts my pockets sometimes as a young female. And it’s not just these fillers. There are so many laser procedures as well that are now in the market gaining more and more utility. I mean, even if I. And they’re getting cost effective as well. When I compare, for example, one of the most popular procedures that used to be there was laser hair reduction. That used to be what, 10, 12,000 per session and now the packages have come to 25, 30,000 for 12 sessions. So the cost there has also reduced. But if we see the volume, overall volume that has happened, even so, I’m from Surat, so even when I see in a city like Surat, the amount of uptake that’s happening is absolutely crazy.
And when I am talking to like I’ve seen clinics rapidly expand just to gain more of this market share. So fillers as well as Botox, I feel because this was more restricted to metro cities, this has started to now come here as well. Especially with the bridal side of things getting more and more popular.
Pranav J. Choksi
Absolutely. And I think as a shareholder, please start, use. Start using the word stun offs now instead of Votox. That really help us.
Akshay
That’s, that’s absolutely true. That is exactly what I’ll do.
Pranav J. Choksi
But thank you, thank you for the call. I really appreciate anything. Any more questions, feel free to reach out to. Thank you. Thank you. Yeah.
operator
Thank you. Our next question comes from the line of Yashtana from I thought pms. Please go ahead.
Yash Tanna
Yeah. Hi team. I hope I’m audible.
operator
Yes. Yeah.
Yash Tanna
So, Prana sir, I had a question. So on the new product launches that we have had, in the presentation you have mentioned in sparse everything critical care like which are the big products that we are betting on like we had Alibactum for example which I think was a friendly successful product for us. So some new products that could be similar to the size of Aribactam and you know, if you can give some indication of the market size for these molecules.
Pranav J. Choksi
Yeah. So Septazidium Avibactam was of course launched in 2022 I believe and that has seen. Oh sorry 2023 and that has seen the roadmap being close to the 25 crore mark mark which we had going further in critical care. There are some combination products which are right now at DCGI like Astion, Mibactum or others which which has that I would say roadmap going forward. There are two, three more, one once a week antifungal. I think if you Refer our slide 2 post indoor there we have a pipeline mentioned in terms of Sparsh as a focus.
We are focusing on the dual chamber bags where we have just applied to NTPA for our Meropenem price increase of almost 30%. But I think we have got an intimation of it would be around 15 to 20. Around 15%. So that would help us for the dual chamber bag development front in Sparsh along with Tecoplanin and then followed by contrast media and the end of the year hopefully by total parental nutrition. So that would be the roadmap in Sparsh. So these so anti infective would be mostly the critical care lineup and here in sparse would be the dual chamber bags followed by contrast media and then the parental nutrition by the end of the year.
Yash Tanna
Sure sir, got it. Thanks for that. And you mentioned like with indoor coming in our saree capacity, you know, becomes free. You also mentioned about the UK tender that you have. But what sort of an export visibility do we have that you can cater to from the field of capacity from.
Pranav J. Choksi
You know, indoors by both the factories. You’re asking, right?
Yash Tanna
Yeah. So I’m just trying to understand the visibility that we have in terms of.
Pranav J. Choksi
I think Avik has made a wonderful slide. I think it’s the last slide of our investor presentation about the market addressable only of eight molecules of us. So the eight molecules where we have already our dose already and we have filed from Navarian, hopefully we are filing from Indore also. And these are common molecules which can be made on either of the sites. So there just to give an example, so there are molecules beyond that. But just to show the work which is happening in the background there is an 824 million dollar I would say market Addressable market which is possible for those molecules where we are trying at least for 5% to little bit to 8 to 10% in the next three to five years.
So those are the work happening beyond in the background. To give you just an indication like that there are around every quarter three to four molecules where dossiers are being formed in ampoules, liquids and all I O which we are trying to take it forward. So let’s say, let’s say step by step we are trying a level to unlock the nav sari and Indore with that sort of a roadmap.
Yash Tanna
Sure. So fair to assume that the scale up of this 800 crore or sorry 800 million opportunity will happen over the next. I mean we don’t have the orders currently but obviously over two to three years we’ll try to scale that opportunity.
Pranav J. Choksi
No, some of the orders like I said already have been coming to us from Brazil, Canada, uk, your Europe, Portugal for the environment and other countries also. I’m not going to make all of name all of them and those are already have been been unlocked from Napsari. So as and more and more capacity is being shifted to indoor as a CMO as well as a domestic space, domestic owned brand. We are hoping that we can cater to that. So already the process has started in terms of numbers also what you have seen assuming Navsari will contribute more this year in terms of export and hopefully from next year both Navsari and India should start contributing in export.
Yash Tanna
Got it sir, very clear. The last question was, I mean on Botox. Sorry, on bottle.
Pranav J. Choksi
Yeah, right.
Yash Tanna
So the question was, I mean you spoke about the hockey stick growth, right. You’re still awaiting the hockey stick growth in this product. I mean I wanted to understand and you have discussed this in the past your plans for the international foray with this product. I mean maybe that that could be the hockey stick growth that we are looking for. So any plans you have, you know, formed up for this product in the international market since it’s well accepted and there’s a ready market for it.
Pranav J. Choksi
Very frankly if you see now beyond Sanox also there’s a lot to do with the Indore and Navsari and our domestic business piece. So right now we are very clear and very focused that Stanox first has to be a strength in the home ground that is India, that and there is enough I would say opportunity available here where we can make it up. Unfortunately, even though being in a very exciting and a very, you know, cool word of Stanox, you know, still it Contributes only a small percentage of a total business. And the other business also has a lot of, you know, a higher roadmap and a higher ceiling still to be achieved.
So our focus is in domestic market to focus and bringing the bring me and that’s why we are in licensing these other I would say multinational brands to beef up Stanox Basket also. However, maybe after two, three years once we are little bit better leverage in terms of Capex and all that we foresee to take the international route. Till then we feel that there’s enough work to be done in India and we have I think also you have to remember it’s not the question only of money and resources the bandwidth of the people. So the bandwidth would be better suited to first you know, exploit Indore, exploit Navsari, exploit a domestic business CMO business as well as exports of our main business and take Sanox and the basket in India and make it at least close to you know, Allergan’s presence or already we are number two we but number two by having only 12 market share is not good enough.
Increase the market share to at least 30, 40% and create a good I would say equity year in India first and then take it abroad.
Yash Tanna
Sure. Got it very clear. And if one last question if I may. I wanted to know you know plans on debt repayment and utilization of the cash that the equity that we had raised from institutional investors.
Pranav J. Choksi
So you’re talking about the 2023 influx right. Of Motilal. Right.
Yash Tanna
And I mean what’s the plan on that even?
Pranav J. Choksi
Yeah, so I think room tester will be a better person to answer that. However I’ll just talk about the utilization of the inflow. Some part was used for of course debt repayment which has already exist listing there of Navsaria before of the Penim factory. Then we used in almost 30 to 40% in our more than actually 40 to 45% in our those years and other I would say finishing off and the remaining was used of course as a part of our working capital to Spotify indoor further. I think maybe you can make it more precise and give a better reply than me.
Devkinandan Roonghta
Yeah, basically for the purpose for the year 2526 the cash flow will be under pressure because the indoor facility will require additional working capital when the sale will be going to pick up. So we feel there will be no surplus cash at least for 27. After 27 the cash flow will start generating the cash which will be utilizing to repay the term loan as early as possible and the remaining will be if to repay the working capital loan. So I think the company will become a deputy by 2029.
Yash Tanna
All right, got it. Thanks a lot and best of luck.
operator
Thank you. Our next follow up question comes from the line of Nitya Shah from Kamaya Kya Wealth Management. Please go ahead.
Nitya Shah
Yeah, so. Hi. So I also remember that Bombay gave me some excellent reviews that you know, it was a world class clinic. So I just wanted to ask that have you opened any other clinics in the country or is this the only one yet?
Pranav J. Choksi
Yes, again I think Nitya, our main focus is to make Stenox and the entire basket big. Opening multiple clinics is not our first. I mean it’s not our interest, you know, because we opened Aricia as a experience center, as a training center where we can actually fortify the skills and the, what do you call the application of doctors in India. We know we have excellent doctors but sometimes there are new techniques coming from abroad where we use Arisia, the interface, to not only train them, develop them, also give knowledge to other doctors. So as of now our focus would be to increase the Stanox brand name and the basket aesthetic revenues.
Purely clinics would be not a focus right now again because our core competency is different. It’s more about branding, about market penetration. And ARISA will continue and will flourish because as a training center we are getting a lot of positive feedback and thanks to you also for your positive feedback. A lot of doctors are visiting. Maybe some doctors don’t have a facility or they don’t have anything. They come and use Arisia for their own practice and you know, there’s a lot of collaboration happening there. So that is where the focus would be
Nitya Shah
just a suggestion from.
And I know your focus is not on the clinics but in my view, like you know, I’ve noticed as for market trends that you know, Delhi, Chandigarh have a lot of demand for this kind of product. Like I feel with the advent of Semaglutide and all these things you should have like this is just my suggestion to have another Arisia clinic experience center in a posh location in Delhi. It’ll help a lot with like, you know, awareness of your brand and the fact that India has a domestic player doing all of this kind of work because most of the time people have this view of, you know, doing this work abroad.
Like they want to keep it under their apps and all of those kind of things. But I feel that if you increase your awareness in the metro cities like Delhi where there’s demand for this kind of product, you could Suddenly see and influx. It might hurt the pocket in the start but you will see the benefits come in later.
Pranav J. Choksi
So I think. Excellent point. So I’ll tell you how we work on that. I think you know, so Nithya, what our strategy is that a lot of doctors or you know, a lot of doctors, kids who are just starting out, they have the capital, they have the space and they want to set up the clinic. So we Aricia actually are all our doctors at Arizicia plus our entire team helps these doctor set up their teams and set up their practices. We import sops of ours about the best practices also and we help them set up a clinic and what we ask them in return is of course you know, help us to create data about Stenox and the different products on the Indian population.
And as you rightly said, we are an interface of getting, I would say international global new products, energy devices where we empower these things. So just to answer your question in a much more specific way, we don’t want to replicate our own and we don’t want to go for that capital route where we invest capital and create our own setups. We want, and we want to empower doctors in India and train them to set up their own and become independent cost centers and profit centers on their own where which we service them via products, services and best practices.
That’s how we foresee in the next three to five years we’ll make a big brand.
Nitya Shah
Got it. And also, could you throw some more light on the licensing deal for startups? What? You mentioned that there’s a licensing deal with a foreign major. I just want to understand that.
Pranav J. Choksi
Yeah. So we had bought an offer in the middle where we had to form a separate entity where we had to dilute some equity. We got an offer but then we realized, and as Rumkasar also rightly said, maybe in the next two years we should have our own, I would say cash flows where, which can, where which can, you know, fund our own independent foray rather than, you know, giving someone equity at this time, at this time in our. Even if it’s of a separate entity of Goofy. It doesn’t make sense. So we got the deal but at this time we have decided to let it go, focus on the India market and in the next two to three years maybe foray into the international markets on our own without any, sorry, the.
Avik Das
The larger portfolio that they are in my. Since I think the bio stimulators and fillers.
Pranav J. Choksi
Oh no, I thought. Oh sorry, sorry. So I think then you can Answer that. Okay, sorry, I think I mistook your question. Abhi, please go ahead. Yeah, yeah.
Avik Das
So we, there is a, as we’ve mentioned in our ppt, in our aesthetic space, we are only offering the toxin as of now. But we felt like the very first application done on a patient is typically not a toxin and it’s a roadmap. So you have fillers, you know, very widely used now, now you have biostimulators, you have skin boosters. And all of this will just help us create a wider portfolio and we can start engaging with clinicians for a much bigger basket of indications. We had options to either develop it on our own and being an R and D driven company, which was, it was a very tempting thought.
However we felt like it is, it may help Stenox if we can in licensing, in license an existing player, a well accepted player who has done a lot of clinical studies, has a lot of clinical data to prove against the, the current offerings in the market. So we are in talks with, as we mentioned, you know, one of the largest filler brands in the world. They have almost 100 million dollar sales of fillers just in the US and they have a lot of clinical trial data as well. We should be, you know, closing that deal.
We’ve had our handshake deal but we should be closing that deal very soon on the commercials. And so that’s largely, we could just widen our portfolio, create a larger ramp for Stenox to move doctors onto Stenox as well as even our clients and patients in future.
Nitya Shah
So just for me to understand, like if you could share like a range of, you know, possible revenue potential for guys from this licensing agreement because I feel this could like change course for the company. Like getting a licensing agreement would be very good at this stage for the product.
Pranav J. Choksi
Yeah. So I think let’s keep something for the coming few quarters also. That will really help us in that Meanwhile, let us first sign the deal, get a roadmap, get a projection and then we’ll keep something. We’ll discuss that in the times to come, please.
Nitya Shah
And my last question is regarding, you know, you mentioned of commercialization of the immunology therapy. So any timeline you would like to share on that and the potential for that?
Pranav J. Choksi
No, at this moment, no, I think it’s too preliminary. It’s happening in the background. Once it comes, any relevant thing, we’ll definitely share it with you. Sure.
Nitya Shah
Thank you and wish you all the best.
Pranav J. Choksi
Thank you.
operator
Thank you. Our next question comes from the line of Pavya Sonawala from. Hello. Yes sir. Your line is.
Pranav J. Choksi
Yeah, please.
Unidentified Participant
Yeah, just, just. Yeah. Just one question. We spoke about how we might consider moving away from the direct to hospital approach. Will that affect our margins going ahead? Any thoughts on that? Definite, definitely. There would be some, some impact. I don’t say that but I think that would be obst. You know, that will be offset with the products which we are coming up also right now. So I don’t feel that there would be that much of an impact by moving that. That’s where the strategy is happening. That is where Mr. Call coming on board right now. We are working with the product mix with the help of the dual chamber bags and the contrast medias where we offset this by using a different channel distribution channel option against thing. There will be definitely a loss of revenue because of thing but that will be offset overall as a splash when we have other products in place.
Nitya Shah
Okay. Can this work in a hybrid model or that? That’s difficult.
Pranav J. Choksi
No, no, it makes no sense. I mean it’s a little bit challenging because you know then it’ll be a. Lot of things to as a system and sops in place. It’s becoming challenging if you do that. So better to have a single thing where we take care of the cash flow in a better way.
Nitya Shah
Sure, Understood. Thank you so much.
Pranav J. Choksi
Yeah, thank you. Thank you.
operator
Our next question comes from the line of Kumar Saurabh from Scientific Investing.
Pranav J. Choksi
Sorry, I think I just have a hard stop at one. So let’s hope that. Can we take this last question and then we can just go on to the next thing. If it’s. If it’s open with everyone, it’s okay with everyone. Yeah.
Kumar Saurabh
Sure sir. So question regarding the growth and the margins. So one, the indoor plant will continue to grow and also the 18% export number, we are hopeful of taking it to 25%. In terms of the business units, where do you see higher share of growth coming? That is one. And second is because export will. If export increases from 18 to 25 and even Indore is a new plant, technology wise it will be much better. Do you see better margins in export going up and indoor contributing?
Pranav J. Choksi
Yeah, so I think I have answered. Some part of it. But I’ll request Avik to take this question if you don’t mind. When Runta sir can take it forward. Are you there?
Avik Das
Yeah, I’m there.
Pranav J. Choksi
So please take it.
Avik Das
I think Roomtasu can guide on the margin side. On the product side we’ve already showed, you know, on our the potentials.
Pranav J. Choksi
Yeah, so go ahead.
Devkinandan Roonghta
Yes, Basically, if you see Rena in 2526 because of the indoor coming, we already said the capacity utilization will be going to pick up slowly. So there will be a margin pressure in the. In the year 2627 then 2726, 2728, we will expect the margin will improve or definitely after increasing the export as well as export album if touched to 25% there will be increasing in the EBITDA margin by 1%. So I feel that EBITDA margin will go into some only after two years. Not from. Not 2627 and 27282829 onwards. I will see that the EBITDA margin will start picking up.
Avik Das
Okay. And sir, in terms of incremental growth by business units, where do you see bigger growth coming in?
Devkinandan Roonghta
It’s a very different difficult question because we see there are a lot of things depending upon FDA permission from us, permission from Europe and all this validation bad is going to take time. So this moment of time to anticipate exact expected turnover is very difficult.
operator
Okay. Okay. Thank you. Thank you. Ladies and gentlemen. As there are no further questions, I now hand the conference back to Ms. Amisha for closing comments.
Ami Naresh Shah
Thank you. Thank you all for joining us today. If you have any further questions or any answer, any questions have remained unanswered, we request you to reach out to our investor relations team and we’ll be happy to address them separately. With that, we conclude today’s call. Thank you. Take care.
operator
Thank you. On behalf of Kufic Biosciences Ltd. That concludes this conference. Thank you all for joining us. And you may now disconnect your lines.