Gufic Biosciences Limited (NSE: GUFICBIO) Q3 2026 Earnings Call dated Feb. 16, 2026
Corporate Participants:
Shweta Shetty — Assistant Company Secretary
Avik Das — Investor Relations
Roonghta — Chief Financial Officer
Pranav Choksi — Chief Executive Officer and Whole-Time Director
Analysts:
Nitya Shah — Analyst
Aditya Pal — Analyst
Vishal Mehta — Analyst
Rahul Girish Shah — Analyst
Bhavya Sonawala — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Goofic Biosciences Limited Q3FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing the star key followed by zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Shweta Shetty, Assistant Company Secretary at Gophik Biosciences Limited. Thank you. Hand over to you Ma’.
operator
Am.
Shweta Shetty — Assistant Company Secretary
Good afternoon everyone. I welcome you all to GoFIC Biosciences Limited earnings conference call for the third quarter of financial year 2526. We have with us today for the call Mr. Pranav Choksi, CEO and full time Director, Mr. Devki Nandan Zumta, CFO and Mr. Abhik Das from Investor Relations team to give the highlights of the business and financial performance of the company and to take questions if any. Before we begin, I would like to say that some of the statements that will be made in today’s discussion may include certain forward looking statements which are projections or estimates about future events.
This estimate reflects management’s current expectations about future performance of the company. This estimate involves a number of risks and uncertainties that would cause our actual results to differ materially from what is expressed or implied. RUPIC does not undertake any obligation to publicly update any forward looking statement whether because of new confirmation, future events or otherwise. I hope you have received the investor presentation which is that we have posted on our website. I will now hand over the call to Mr. Avik for sharing the business highlights. Over to you Avik.
Avik Das — Investor Relations
Good afternoon everyone and thank you for joining. I’ll start with a brief update on what progressed across our business units where execution is tightening before Pranav takes you through the divisional performance trajectory and indoor ramp up. So across the domestic branded portfolio the focus remains consistent which is drive protocol led depth improved, mix through science backed differentiation and scale through repeatable execution rather than only through launches. So first on our hospital injectable platform execution remains hospital first and account depth driven. In critical care we continue to concentrate on protocol heavy segments, segments of sepsis and other resistant infections and invasive fungal diseases where the adoption translates into repeat ordering.
Over the period we progressed evidence led positioning and hospital adoption for some of our advanced molecules including thymosin alpha 1 which is immunosin alpha and sepsis adjacent immune dysfunction and dalbavansin our brand Dalbavan for resistant Gram positive infections and ISO Hokunazole where we have a brand called ISAWHIC in complex fungal infections. The emphasis remains on increasing molecule class share within existing ICU accounts and scaling through corporate chain and tertiary hospital penetration. In Sparsh we tightened the operating engine. We brought in a lot of distribution, control and collection discipline conversion inside hospitals while continuing to build differentiation through formats like dual chamber bags.
The next category triggers in Sparsh will be contrast media and the total parental nutrition range which we will be launching. The progress to expand wallet share within existing accounts is also progressing well now on our women’s health platform it’s been a shift towards prescription led injuries with deeper life cycle coverage. In ferticare the strategy remains centered on reproductive immunology and increasing share of cycle in ivf. Core brands continue to compound very well Guficin Alpha in recurrent implantation failure alongside Pure Graft and Cetrocare and we progressed pipeline work on super pure urinary FSH to expand the stimulation opportunity with high purity and yet very cost efficient propositions.
In Zenova the execution cadence improved and our power brands continue to anchor growth which is DD1 and Stretchnil. With fertility adjacency building through Fertiforce the pipeline remains focused on the larger women’s health therapy pools of endometriosis, PCOS and menopause. This will help us widen our long term prescriber relevance. Now coming to the Toxin platform. Here we are building a high lifetime value franchise through capability creation and structured market development. In Astiderm we continue scaling Sonox which is our Botany toxin type A while building the capability bridge to a broader aesthetic platform. Injector creation and chain clinic readiness and Indian clinical data generation is something that we focused on to support premium adoption.
In neuro care. The progress remains very methodical which is expanding the therapeutic toxin coverage just beyond neurology into urology, ophthalmology, pain and neurosurgery and of course anchored on indications where adoption is guideline and guideline driven and long duration. Coming to our Neutra Ayurveda platform where we are sharpening our focus into a chronic care platform. We continue strengthening a differentiated pain proposition such as the upgraded Goofy can oil while building on the GI opportunity with Monoprizon where we have a brand called Vonfa as a prescription. Let’s growth level now I’ll give you all a quick highlight of our international business where we are moving towards an IP control complex injectable market access model.
During the Period. We saw regulatory progress in regulated and priority semi regulated markets including colostimited approval in Germany and regulatory continuity actions for Pantoprazole injection in Portugal and Vancomycin injection in Lithuania. We expanded registrations in Myanmar across a basket including Pantoprazole, Azithromycin and fertility hormones and strengthened the quality gateway through unit.
Avik Das — Investor Relations
2 GMP approval in Oman which opens.
Avik Das — Investor Relations
Up the lucrative Middle east market for us. Finally on Indore, the ramp up continues in a stepwise compliance first manner with disciplined tech transfer and scaling aligned to our audience readiness. Prana will address the indoor ramp up curve and how the divisional execution has translated into our overall performance trajectory. Now over to Roomta sir for the overall quarter numbers.
Roonghta — Chief Financial Officer
Thank you Avik. I will going to give a financial highlight for Q3 of financial year 2526 versus Q2 of financial year 2025 26. I’m not able to compare the Q3 of 2526 Q3 of 2425 because the indoor plan was capitalized during the last week of December 2024. So I’m making a comparison of Q3 versus Q2 final. 25 26. The turnover for Q3 is 231.1 crores compared to Q2 of 230.4 crores. The EBITDA for Q3 is 37.1 crores compared to Q 2 of 37.5 crores. The EBITDA margin for Q3 is 16.05% compared to Q2 of 16.45%.
The profit before PAC margin pack before tax for Q3 is 21.1 crore compared to Q2 of 20.5 crore. The pack margin is 9.13 in Q3 compared to 98.90 in Q2. The profit before tax is 15.63 crore. 15.6 crore in Q2 compared to 13.99 crore in Q2. The PAT margin is 6.75% in Q3 compared to 6.47% in Q2. Thank you.
operator
So shall we go ahead and proceed with the Q and A session?
Shweta Shetty — Assistant Company Secretary
Yes you can.
Questions and Answers:
operator
Thank you. Ladies and gentlemen, we will now begin with the Q and A session. Anyone who wishes to ask a question may press Star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to please use handsets while asking a question. Ladies and gentlemen, we will now wait for a moment while the question queue assembles. Our first question comes from the line of Nitya Shah from Kamayakya Wealth Management. Please go ahead.
Nitya Shah
Yeah, hi. Am I audible?
operator
You are audible sir. You may proceed.
Nitya Shah
Yes, so hi team, just wanted to you know understand some more that you know the ramp up as was discussed in the last call that you know Q3 and Q4 will see disproportionate rise as you know more of regulatory approvals come in and exports pick up. But the numbers are saying otherwise that there are many segments, many interesting developments going on but we are seeing growth of only you know, 11 to 12% on a year on year basis and even quarter on quarter it’s flat. So any color that is this due to some critical price erosion or what is the scenario here?
Pranav Choksi
So yeah, we call the call of Q2 we already had got Mr. Call for Sparsh and in critical care also if you remember we have, we were directly billing to the hospitals and we were in the process of revamping our operations. A part of critical care and also Sparsh from going from you know, direct hospital supply to you know, taking it back as a stock is because a lot of our working capital was getting affected in the long cycle. So as last quarter also we took a hit of around I think 5, 6 crores. This quarter also we have taken a hit of 14 to 16 crores.
And if you remember the debtors at A turnover of 800 crores was around 320 crores last year approximately. And this year our target is also with the jump from 800 to whatever we end up 900 plus or maybe 929, 30, whatever. So that way also we want to bring the debtors sub 300. So when in July Mr. Rajesh call came in we did a reti of the market that which are the primary, secondary or tertiary hospitals where what is the reason that this money is not coming? Is it stock or is it just cycles or is it some other evaluation? So there has been a you know, comprehensive approach which started in of course Q2 where the impact was only 5, 6 year.
This quarter has been 14 to 16 as per our estimates in Q4 it might be between 3 to 5 cr more but that is what we have taken a hit once to get that product out and get the debtors in control because it should not happen that the expiry of the product also gives and the hospital still refused to pay because they are ready to keep the stock at our expense. So at the same time we saw uptrend in exports and we saw an uptrend in FATI care as well as in other segments. So you know, and now indoor is also ramping up.
We don’t want to compromise the ramp up indoor in terms of the vacuum capital by just in the Indian market still give those 3Bs without any recourse. And you know, and that’s the reason that this consciously has been done this year because like I started the call in Q1 or Q2 also that 320 of our over 800 was quite not digestible. Neither for the CFO, not for me. And you know, it would not be a good sign in the market also. So that is how this is the thing which we have done. Majority has been finished like I said, 5, 6 last quarter and 14 to 16 this quarter, next quarter.
Even with that 3 to 5, we are still looking at, you know, that improvements to come in. Other things start kicking in. Even without the GLP uptake, we look at some positivity. Yeah, okay.
Nitya Shah
Is there any like price erosion in the critical segment or have the prices stabilized?
Pranav Choksi
No, no. If you see the gross margins are not a concern. If you see that’s not a concern. On the contrary, the astronomy backtech which was supposed to be launched will be launching hopefully by this quarter on maybe Q1 thing that will also add in the margin. So erosion. I think that the worst has failed, you know, the APIs and all that is done. So I don’t think that’s the process. At the same time, even in fertility the price is quite stable. On the contrary, even taking this hit back, the exports have compensated. So that’s why you see the gross margins not getting affected.
Nitya Shah
Right, right, understood. So what is your outlook for FY27? Say that once you move onwards from say 30% capacity utilization, are we looking to see a 20% plus kind of growth number in FY27? Because it’s been a very large capacity expansion. So when will we start seeing like a tangible payoff? I understand after the debtors have been, you know, sorted out. But when are we seeing a larger growth come in in FY27? What is your expectation on that?
Pranav Choksi
I would still stick to that. That if you know, from an 800 odd number. 808, 10 last month, maybe last year, maybe whatever. 920 plus this year. Yes, definitely a minimum of 15% is what we look for next year. Like I said, it’s a mandate given by the CFO and myself to the team that whatever has to be done, we want to migrate to that stock is billing as soon as possible and don’t go for that. You know, I would say stretched Working capital. So I don’t think the impact of that. What do you call this? Sparshan Critical would stretch on beyond this year.
So 15% bare minimum is what we target for 27.
Nitya Shah
Understood. And on the regulatory side, is there any updates you’d like to give in terms of.
Pranav Choksi
So there has been. Our EU audit has been completed in the month of December and that went well. So we hope, like I mentioned that the certificate should come by March or April. So we already are advancing and so we hope that the business as we are committing. If you see the earlier slide also I think must have presented in the. Sorry. In the presentation we look at Q2 max Q3 for uplift of EU markets at least from indoor. In the meanwhile there have been certain other contracts for indoor which hopefully also should start paying off.
That is a possibility. Yes.
Nitya Shah
Okay, thank you. I’ll get back in the queue.
Nitya Shah
All the best.
operator
Thank you. Our next question comes from the line of Aditya Pal from msa. Please go ahead.
Aditya Pal
Hello. I’m audible.
operator
You are audible, sir. You may go ahead.
Aditya Pal
Thank you so much for the opportunity. So a lot of my questions have been answered but wanted to understand. So you explained the domestic business and you explained the international business. We were also expecting some uptick in our CMO business this quarter and going towards next quarter. So how is that panning out to be.
Pranav Choksi
So if I. If I don’t go for the correction, we are still looking against that 200 crores, almost a 20 jump. Q&Q if we remove this 14 to 16 cr what I’m trying to say. So definitely the indoor is because as you all know North Star is chocolate block and saturated. So indoor is getting the uptake. There have been some GLP1’s validation batches also we have taken apart from the audit there have been other clients also who have come in. So that is happening. So if you. Let’s say I’ll give you some sort of a numbers, whatever exposure was around maybe 20 to 25 crores total output from indoor per quarter that has at least gone to around 36 to 38.
So that’s a positive sign. And we hope that should go to close to 40, 42. I’m saying this includes not only the external numbers but our internal production also. So these are all positive signs from indoor which will help us to, you know, take that uplift. And this is even without the exports kicking in and this is without us. So all this is coming is internal and CMO only.
Aditya Pal
Understood? Understood. And in terms of, in terms of the Cost base. Right. So employee benefit expenses has been going up quarter on quarter for the last four quarters. Today it’s at 40 articles. How much of this would be the. Because the one time labor cost and how much would would it be due to organic?
Pranav Choksi
I think a better person to answer that. And maybe I’ll key in in terms of output later you want to talk about the employee expense and then I’ll come in terms of the output also.
Roonghta
Basically if you want to see the other expenses. No, it also includes the R D and validation expenses. And at least for 2 years 1 and after 2 years this expensive is going to be in part of recurring expenses because unload require lot of validation.
Aditya Pal
My question, my question is employee benefit expenses not other expenses.
Roonghta
Employee benefit expenses today is around 40 crores per. Per quarter. It will go into 160 crore rupees per year next year. Another another you can see a hike of around 7%. Animal incubate. The number is now changed. It’s only annual increment which has to be given to the employees. So it may touch from 160 to 175.
Aditya Pal
Understood. And this now this is a disaster standard. Now cost base 40 is the largest quarterly expenses.
Roonghta
Almost all recruitment has been completed. There is no first recruitment. And the increase will going to cover annual increment to the employees. This may increase from 160 to 175.
Aditya Pal
Understood? Understood. The question on productivity. So how are we looking at.
Pranav Choksi
There are some. There have been some six segments. Sorry, there have been some six high profile appointments also this year as you must have read, you know. So apart from getting doctor for the international business then ramping up his team for international business. And that’s why you see the international business going from almost 120 to you know on a higher set to going to around. So almost the majority of the growth almost of around 60 to 70 crores is coming from the international business around 120. I’m talking about the formulation exports not the API exports.
Similarly for Rajiv Agarwal for infertility and then Rajesh Kaul for Sparsh. At the same time Vijay Kumar for Galderma from Galderma of course for Stanox. And at the same time also we also have ramped up like what Runka sir rightly explained. If you see indoor which was an average of around 350 people on an average. And of course I’m saying post the capitalization was out. So let’s take the January to March quarter which is a full quarter where there was no capitalization there, the 350 has gone to a rightly peak of around 480500 which is what rightly said where we need to take care of all our requirements.
So even though the output on productivity has gone only from I would say 2526 to around 38 to 42, the employees are full fledged now. Now even, even if I want to get my sales increase from 40 to beyond, we are almost at the peak except for the yearly increments which would come in in terms of indoor and of course for Navsari and for field force that he rightly said the average increment would come to 6 to 7% assuming of course the attrition and average that would normally. 6, 7% is what we foresee from year to year from now on.
Aditya Pal
Understood? Understood. This just last question before you come back in the queue. So you answered to the previous participant that we are, we are looking at a 15 odd percent on the bare minimum for coming in in FY27, 28. FY20, your FY27 and your FY28. Now the question is that because a lot of things are happening, we’ve got GLP1, a lot of our CMO customers moving from NASAI to Indo and fingers crossed we get our EUC GMP earlier than expected or as expected maybe by FY26. And you said that by Q2 or Q3 the revenues from the international business from Indo should start materializing.
So what is keeping us on the fence to say that not 20% but 15%. Is there anything that we should be aware of?
Pranav Choksi
I again say that you know one thing we have realized that as you try to go on the international front, the working capital is the most crucial thing. And that is something has become a little bit more sankrocked in the organization right now. So even though this year we could get those numbers, we have been very disciplined about it. So I don’t want to, you know, have one more year where I commit something and I don’t deliver. So at least what minimum. What we give is what we should deliver. And of course if we there are of course many other moving parts which are positive but if that comes anyway, you know, that’s always a positive sign.
You will never question me for that. So I always feel that when you putting me on the block, 15% is high time. We give you bare minimum and whatever goes beyond, we all should be, you know, we’ll take it at that time and be happy or not. Let’s decide at that time.
Aditya Pal
Yeah, understood, understood. And on the, on the CMO front, so last quarter when you were discussing, you said that 50% of the client of the 1214 major clients had moved moved to Navsari and outside Indore from Navsari. And we are also introducing a couple of new wild products within them. The question is that. And you also mentioned that Q3 might not be that big of a quarter. Q4 we can expect good quarter. So if you can, if you can shed some light on that. How to look at it, how to. Because at a 925crore, what will be the CMO percentage? CMO revenue percentage.
Pranav Choksi
Absolutely. So if you see when I mean 50 of my. So we have a unit one which is a hormone and other general facility, which is the legacy facility. Then we have a Pellen block. Then we have a unit 2 at Navsari. These are the three main units apart from of course the botulin toxin. So the unit 2, which is EU, Brazil, Canada and all these other accreditations are there. That is out of that 50% clients have all moved to indoor because we had to get the capacity free for our export orders to be taken care of.
Even right now the order book which we have is more than around, you know, 150 to 155 crores at any time, which we are running with, which is high. I want to bring that order book down to at least 80, 90 crores. And it’s something new. It’s almost like a 90 day window which I want to bring it down to 60 day window. So that is the main purpose. So that definitely is happening indoor from the unit 2. And that is where we feel that this will take on. Now more interestingly, we also have got certain projects for GLP1 in Indore also, apart from what we had in Navsari.
So little bit because of those validation batches and because of almost that went for almost 33 for one of the big pharmas. They have gone for a little bit Bohemian approach to GLP1 from indoor Apart from the normal conventional liquid product. So that way is where our facility also little blue because we see a big upside happening there also. So that validation batches also are now getting done. I mean it got done in January and we are seeing the testing everything in February. So little bit of that December. And Jan also went in that validation batches of the GLP1 from Indoor for those things where we see, you know, when you go for any validation or anything, almost your entire equipment is blocked for three days or four days.
Aditya Pal
Where it normally should be blocked only.
Pranav Choksi
For one and a half day. So those are the two factors I feel should also take it more. And we also are pushing more and more of our clients. So we hope that by March or maximum, by June at least, you know, the remaining 75, 80%, remaining 50% may be 75, 80% also move through. So we’ve become a little bit decluttered because now Sari’s orders from UK and Germany as our uk, Portugal and Brazil and all are also ramping up. So we hope that that front, that positivity, we can pass it on in terms of numbers.
Aditya Pal
Understood? Understood. No. Wishing you all the very best. I have a couple of more questions. I’ll come back in the queue. Thank you so much.
operator
Thank you. Participants, to ask a question, you may press star and 1. Our next question comes from the line of Vishal Mehta from Oakland Capital. Please go.
Vishal Mehta
Hello.
Vishal Mehta
Hi. Am I audible?
operator
Yes, you are audible. You may proceed, sir.
Vishal Mehta
Pranav, I just had one question on the Botoxin toxin piece of our business. We’ve been working on it, developing it for, you know, almost three to five years now. What is the current size of that business and how is it compared to, you know, the last couple of years, how has it grown and with the team expanding, how do you see the growth in this segment for the next maybe two, three years? And also if you could just highlight what is our capacity here in terms of sales potential and if there is any potential in terms of exports for this product?
Pranav Choksi
Yeah. So if you see the total Portland toxin market in India is around 20 to 25 million US dollars, both for therapeutic and aesthetics. We are approximately at 23% of the market share right now in terms of IQVM, which is there. So we are around 25 to 30 crores right now, which is the total market share, which includes our aesthetics, our therapeutics, and of course our government supply also. Now this has of course evolved from 2021, 22, where the actual launch was the aesthetic division was launched. And then in 2022, the therapeutic division was launched.
And we grow on an average around. I mean, this year, of course, it was around 22 to 25%. The last two years it has been 30 and 40% of the base is very low. Now this I foresee for it to grow in this thing. Luckily, with the team coming in in the month of February of Mr. Vijay, Dr. J. A. And Dr. Jyotija and the entire team little bit there also, we have a little bit upgraded our selling talent. So There also we have taken some teams from Galderma and toxin, which brings a lot of credibility.
The perception what was earlier, you know, it’s an Indian toxin. Now you have multinational team members endorsing it. We have now clinical trials also now publish, at least one published, the second one being published by the end of this month in February. So those are bringing today also I’m right now in Navsari just attending the call because we had some doctors visiting in terms of scientific presentation, discussion on Portland toxin. So we hope that this is more of an educative thing and it’s more of a scientific thing which will of course gather faith in terms of 20, 25%, there might be a hockey stick which might come for the entire country.
And when the entire category gets expanded and we hope that we are in the first few to take it up. More importantly, what we lack, I’ll tell you what we lack right now is that, you know, right now, doctors, when they endorse our toxin, they said, do you have an incomplete, but you don’t have a filler? So when they go to a Galderma or for Allergan, they have a toxin, they have a filler. And as in combination, they feel if I stop buying an X something, I have to keep everyone happy. So I get only some part of the shell with our agreement with the Canadian company, which will be, which has been signed, of course, it has been signed now, so I can officially say that right now.
So with that coming in, we should be hoping to get that product launched by June, July. Now with that product coming in, we always will. There will be no excuse that why a doctor should not endorse a product. We have an, you know, we have a product of fillers which is number two or number three in US which has a total revenue of more than $110 billion. You know, and we can backpack on that along with our toxin and it can be a good, you know, I would say complementary basket. And then that also helps us to get a little bit more market share.
So even without the filler, we are able to get the 23%. 23% market share in a market where of course, Allergan is almost like a 50% dominant market. So we hope we can take more share from them in the years to come and more importantly, the category expansion to come. So that will help us to take into the Indian market coming to the international market. Very frankly, let us first, I mean, my views are for the next two, three years, let us focus on revamping the Indoor getting the I would say domestic market taken care of.
Have a robust system in place for both aesthetics and therapeutics and get the fillers also in place. And then maybe from next year end once the indoor is fully ramped up maybe in 27, 28 start thinking for tops in for the international market. There have been opportunities but we would like to keep it in the future.
Vishal Mehta
Great.
Vishal Mehta
Sorry.
Vishal Mehta
In terms of sales potential, in terms of capacity expansion would not be a challenge in this segment if at all demand comes.
Pranav Choksi
I missed the question about the capacity. So the capacity is. I mean right now I sell almost around 20000 wires per month. My capacity can be even 20. I mean 10 lakhs. 15 lakhs also that’s not a problem. So right now with 20000 per month these are the revenues what we have 25 to 30 cr. So that’s not a bottleneck for both lint offs even. And as you know it’s a product which we have our own strain so we are not dependent on any third party. Also for APIs or toxin or something. Everything is made in.
Vishal Mehta
Great, that’s very encouraging. And also one small question on the margin side we’ve given a 15% top line bare minimum growth guidance. What is it that we look at in terms of margin trajectory with ramping up, how do you see that panning out over the next 23 years?
Pranav Choksi
Can I request Jungta sir to take this question? It’ll be more precise. Yeah.
Roonghta
So if you see the present EBITDA margin around 16% after 23 years when the capacity utilization of indoor will rise more than 50% we expect the margin again EBITDA margin will be raised from 16% to 19%. And once the utilization reached more than 75% the EBITDA margin may touch between 20 21%.
Vishal Mehta
Great. Thank you so much and all the.
Vishal Mehta
Best for your future.
operator
Thank you. Our next question comes from the line of Rahul Girish Shah from Glowstar llp. Please go ahead. Rahul, your line has been unmuted.
Rahul Girish Shah
You may proceed your question.
Rahul Girish Shah
Yeah, my question is already answered. I the same question I was going to ask about the margin part because this quarter what I could see is.
Roonghta
That.
Roonghta
With the same level almost we are nearing 30% utilizations at indoor and.
Roonghta
Still margin is compressed to 16.
Roonghta
Because this was earlier mentioned that indoor with Rick it will get EBITDA positive on or ebitda accretive at 30% utilization. So is there any fixed cost is the only thing which is dragging the market or the opex has slightly increased this year. That was my question.
Roonghta
Basically today only the because of the fixed cost today the EBITDA margin we are expecting at the breakeven in the Q4 of financial year 2526 and in 27 we are expecting it will end of the 27th. We expecting that interest and appreciation will also be absorbed by the indoor. And after 27 it will start giving cash margins. And as expellers profit margin are we.
Roonghta
Expecting indoor to reach 50 utilization in FY27 by end of.
Roonghta
FY20 by end of. You can expect in Q4 of 252627 the employee ration may cost to 51 but not as an average of full year. That’s great.
Rahul Girish Shah
And one more last question if I can add it to when is the UK MHRA planned? Because it was originally planned for Q1. Is there any definitive date available there?
Pranav Choksi
You’re talking about indoor, right, Sir? Yeah. So Indore actually audit has happened in the first week of December from EU Portugal. And if that goes through then you can also accept the same in terms of harmonization. So that audit has been done in the first week of December 2026. 2025. Sorry.
Rahul Girish Shah
Okay. Okay. So the Q2 or Q3 you said the. The orders and other things will start kicking on which was hindering the growth. Right? The export group.
Pranav Choksi
Yeah. So the export revenue from Indore will start kicking in for the Europe and the regulated market from Q3 Q4 because we also have a Saudi audit also in the meanwhile there are some basic registrations like you know, like Southeast Asian and other markets where the export already has started from Q4 26 and it will continue going for like Africa. Southeast Asia should already has already started from this Jan. 2026.
Rahul Girish Shah
Okay, you can update something about Celvex if the new investment is done and the progress over there, if you can just give a little bit.
Pranav Choksi
So I think it’s a very far thing. But just to share with you, as you know, this is cancer vaccine therapy for solid tumors. They had a very good remission rate of more than 68, 70%, maybe more. I think a big will be more precise to the numbers and right now they are plasmid and their gene is already ramped up. They also are now in the process of getting it outsourced to Syngene to get their final constructs ready for that. There was a requirement from all investors to pitch in something. And that’s why we also felt that we should be part of the story because we have 100 India rights and we have also rights for the some part of Europe also.
So this is a thing which I still am totally. I believe we must have invested close to $150,000 till now in the last four, five years. It’s something very long term but I have a lot of hope and expectations. Let’s see when it comes. It’s a very far fetch. It’ll still take five, six years.
Rahul Girish Shah
Yeah, yeah. It’s like investing in a startup store. Thank you.
Pranav Choksi
Yeah. Mohan, Startup with a good clinical background and good clinical data, at least on an animal level. So it’s not completely proof of concept. It’s proof of concept with some animal data.
Rahul Girish Shah
Thanks. Thank you.
operator
Thank you. Our next question comes from the line of Bhavya Sonavala from Samasa Capital. Please go ahead.
Bhavya Sonawala
Yeah, thank you. Am I audible?
operator
You are audible, so you may go ahead.
Bhavya Sonawala
Yeah, just two questions. First, just want to understand that when we started the direct to hospital approach, we thought we would get some kind of understanding of the patterns, etc. And now we are rolling it back. So what exactly, you know, what issues did we face that you know, we are trying to roll it back.
Pranav Choksi
If you see during sparse and some part of primal care and critical care, we wanted to go through the primary and secondary nursing homes apart from the tertiary thing because we always thought that the tertiary nursing homes, I mean tertiary, I mean the big, big guns of the Indian hospital, I mean hospital industry, they Normally pay in 150, 180 days. But there we have distributors. So when we thought that there’ll be a better margin improvement and there’ll be more penetrative data where the margins will improve. So the margins of course did improve. But the problem was when the margins improve at the cost of a payment coming after almost 150 days or 180 days where earlier we were a little bit, I would say, you know, shielded by the distributors used to pay us in 30 to 45 days.
But now with that thing happened in the last two years and that’s how from September, I mean from August and September we started changing this. Now instead of the main thing was the database. I’ll come to the database. So what we tried last year, we knew this could not carry on. So from I think around October, November 2024, I believe we also started requesting all our stockists to install marg. MARG is a particular software in India where the sales from a stock is to the primary second year tertiary home can be, you know, checked and at what rate is checked.
So that took us almost, almost 8 to 10 months to convince the stock is that when we are installing this mark patch or this data, none of their IP data will come to us. It’s only that we will get data related to Goofy. So that implementation took time. It started in November and it eventually got done by September 2025. And at that time, once we knew that now the mark data is good enough, we thought this transition makes sense because at least we can still keep a control where our products are going. And then we started this call that once, now the mark data is in place, let’s start getting, you know, you know, a little bit more strict about those hospitals which are eventually, you know, lagards and not paying us on time at the same time stretching our working capital.
So yes of course with this there will be a hit of around some X percentage more but that when I compare the working capital and the interest cost, it I think almost makes no difference. So this is what we took a call in August, September 2025.
Bhavya Sonawala
Okay, understood. Just one more question. I think in your presentation you’ve spoken about in Astrodome, you’ve spoken about the global in licensing and I’m assuming that the same you refer to the Canadian brand. So is this any kind of tech transfer or is it a pure licensing? Can you just expose some light on that and what potential does it have?
Pranav Choksi
It’s a pure licensing thing. The total sellers market in India is around 200 to 230 crores. The toxin market is around close to, you know, around 120 to 140 crores depending on the exchange rate and all that. So we feel that the fillers also once coming in we can, you know, also play around and more than the fillers, they have a good product in the pile in terms of PDRNs and those other conjugates which are the new age thing. So pillars I have are now but the future products are going to be PDRN and Exosomes and also they have some unique medical devices which help us for administration of certain specific aesthetic products also.
So it’s a good collaboration. Plus they also have two big training centers in UK as well as in Canada where a lot of new age development of combination treatment of fillers along with GLP1s and also other things are coming in. So that’s also going to add value to us. So this is what we feel. It’s a good mix for us.
Bhavya Sonawala
Okay, just the last question, if I can squeeze in, I think you spoke about a previous question about Fudge that we this quarter took A hit of let’s say 15, 20%. And if you take it on the higher side that’s on, on a QOQ basis that’s still 5 to 6% growth. So is there something more to it? Because you know we were of the idea that Q3 will show some decent ramp up considering text transfers have started and then indoor, sorry Navsari will be free for some exports. So can you just clarify this I didn’t understand question.
Pranav Choksi
So you’re saying that that 14 to 16 impact was there. I mean I explained. Can you repeat your question again? Sorry I missed it. Maybe I didn’t understand.
Bhavya Sonawala
No, no. So I’m just, just trying to understand that even if we take the, if the 20 crore write off or the issue that we have and consider that, that it was considered as a revenue that’s still 5 to 6% growth on our previous quarter. And we were of the idea that Q3 will be. Yeah Q1. Q yeah. And we were of the idea Q3 would be quite better considering the spectrons will happen and then Navasari is also free for exports. So just wanted to clarify.
Pranav Choksi
So if you see. I got your question. So if you see Navsari’s revenue are mostly saturated at the, you know, at the 800 mark and of course you know the normal domestic growth which comes, it comes. So the additional, if you see the entire growth which has been coming in is because of the info ramping up coming in. So what the expectation of doing 10% or 15% on 230 is not what the statement I gave. But yes, definitely I gave that we would be coming close to that 250 mark. So if you see last year in the same period with indoors starting in October 2024 from October to December we had done I believe 200 or 205 crores from there the revenue year would be almost at a 20% jump.
But yes, QNQ I don’t foresee that drastic jump coming in of 10 15%. Qnq but definitely like I said overall as a business 15 to 20% is what we are foreseeing because regulations take time, validation batches are still ongoing. Also you know there have been a correction of in terms of debtors control this year. So that’s why overall as a package we feel that this year will be a little affected next year. Again I think someone pushed me to answer that. I said yes, minimum 15% what we should look for. But yes, hopefully with other positives kicking in, 20% is what we should aim for.
Or more. But I think 15% is basically what I give. Like you said, there are erosions coming in, there might be environmental factors, there might be something else. You don’t know how the GLP landscape will also come in. So I’m keeping in terms of my word. I’m trying to be a little bit conservative and try to achieve first and then talk more.
Bhavya Sonawala
Got it, got it. And this you the audit that happened at the same as ugmp, right. Is the understanding correct?
Pranav Choksi
It was from Portugal, Yes.
Bhavya Sonawala
And that allows us all across Europe.
Pranav Choksi
Colombia, South Africa, uk. Everything. Yeah. Which is.
Bhavya Sonawala
Sure. Thank you so much. All the best. Thank you.
operator
Thank you. Ladies and gentlemen, to ask a question you may press star and one, we have a follow up question from the line of Aditya Pal from msa. Please go ahead.
Aditya Pal
Hi, thank you again for the opportunity sir. Just wanted to get the numbers of our SBUs and how they’ve performed YOY and QoQ and then you can also maybe segregate how the domestic bandit business performed.
Pranav Choksi
Sorry, sorry, can you repeat that brother? I just missed it because of the network issue.
Aditya Pal
Sorry. So what I’m requesting is that if you can also if you can tell us how the SBUs have performed that is domestic banded business, international API, CMO and then you can double click on the domestic branded business as well how each sub SB has performed in the dbp.
Pranav Choksi
Okay. So coming to the primary divisions of course domestic business this year because of this ram down because of these two major divisions of Sparsion critical care we have, we will be growing only at around maybe you know, around 8% plus. I’ll still give an exact number hopefully in the next call but I look at it, I think it’s around 8%. The CMO business is more or less the same because most of the capacity which we have here trying to use for the export division, export division is growing by almost 40% but the base is less of around 120.
That’s where that thing is there. API is like I said, most of the API which we make are for in house. So this is where the entire thing is there. After coming down to a deep down of all our domestic business then you know the critical care and the sparsh we’ll see mostly like a stagnant year this year or maybe you know because of all these I think almost 14 plus 519 plus and maybe 3 more. A 22 crore I would say correction would be there this year totally. I’m saying even including Q4. So at the end of the Q4 we would be little bit more on the same level as last year.
But of course with a better data profile infertility has increased by around 16 to 17%. Botland toxin has increased by almost 20 to 25% but the base is small and our aesthetics, Ayurveda and mass marketing has grown by around 12%. So this is the broad percentage.
Aditya Pal
This is very helpful. Thank you so much. And on your strategy of critical and sparse the domestic band business. So if I were to look at your data days and how, how much would it impact the working capital, how it would impact the working capital cycle and how much would the working capital cycle fall by?
Pranav Choksi
There are two reasons why we have to be a little bit more cautious in critical care and sparse. Firstly, the procurement of the rm the testing of the RM because these are the sterile materials, the starts. I mean the entire working level starts from there. So the, you know the RM testing, the RM procurement then the lyophilization process is around five to 10 days depending on the product. Then there’s a 15 day stability. Then there’s a transit.
Aditya Pal
I understand the inventory cycle and everything but because we are tweaking. Tweaking the.
Pranav Choksi
You’re saying only for the debtors, you’re asking.
Aditya Pal
Yeah, only for the debtors. Because I just want to understand how will it impact the networking capital inventory and all remains the same.
Pranav Choksi
Yeah. So right now because the number of validation batches are increasing in. So I mean let me answer. I think we are with the help of the cash flow coming in. There’s a lot of cash flow required for ramping up indoor in terms of the new products like daptomycin and others. So for that we don’t want to go for debt and we want to go for our in house what do you call cash generation only. And that’s how we are doing that and taking it.
Aditya Pal
As in because we are revamping our entire strategy of. Of critical and spike because we are not giving them so much receivable days and we want to get our money faster. That is what I’ve understood from the call. So I just want to understand. We were at close to say in fi. In FY25 we were. We used to get money in 140 days.
Pranav Choksi
I think this question is better for room tester and navig than me but I’m still trying to answer.
Roonghta
As you understand the overall the number that the question was only the these receivable sticky receivables in PERS and critical.
Roonghta
Care and that’s the number that he is given.
Roonghta
So if you take that number and you find the number of days you’ll get your answers. Overall the other businesses the it sort of remains the same and going forward.
Pranav Choksi
Let me give him an answer which I hope. Yeah. Okay, go ahead.
Roonghta
Last year our average status in was around 140 days. And in 26 we are expecting it should come down to around 120 days.
Aditya Pal
120 days.
Roonghta
Yeah.
Aditya Pal
All right. All right. This answer. This answer. Yeah. Thank you so much.
operator
Thank you. We have a follow up question from the line of Vishal Mehta from Oakland Capital. Please go ahead.
Vishal Mehta
Hi sir, just wanted to check what is the debt number as on date and how do you plan to reduce this or what is the deleveraging plan.
Roonghta
Over the next two, three years.
Roonghta
Presently we are having two types of loans. One is some loans which has been taken for indoor plant and one is working capital requirement. Including both the loans I can say today it is around 375 crores. And it may remain at same level at least for 27. And after 27 it will start come down. Because lot of working capital is required for whenever there is a sale jump over there is a reading the inventory as well as data. So instead of borrowing working capital from the bank we are making from internal accrual. And so we will not in a position to prepayment the repayment of preview the term loan.
And we will start prepayment of the term loan from 2828 onwards. So I think the loan will remain at 375 but still to March 27.
Vishal Mehta
Got it.
Vishal Mehta
So.
Vishal Mehta
So depreciation interest would be at similar levels in Q3 for 27 as well.
Roonghta
It is. It is around 9. It is today it is around 35 to 36 crores. I think it will going to remain in the same level in next year also.
Vishal Mehta
And same as the case with depreciation as well. Sir, everything is now in the business.
Roonghta
Yeah, everything is out.
Vishal Mehta
Got it. Thank you so much.
operator
Thank you. As there are no further questions from the participants I now hand the conference over to Ms. Shweta Shetty for closing comments.
Shweta Shetty
Thank you very much for joining us today. If you have any further questions please feel free to reach out to our investor relations team and we will be happy to address them separately. With that we conclude today’s call. Take care.
operator
Thank you. On behalf of Goofic Biosciences Ltd. That concludes this conference. Thank you all for joining us. You may now disconnect your lines.
Shweta Shetty
Thank you.