Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Indoco Remedies Limited (NSE: INDOCO) Q4 2026 Earnings Call dated May. 07, 2026
Corporate Participants:
Aditi Panandikar — Managing Director
Unidentified Speaker
Sundeep V. Bambolkar — Joint Managing Director
Analysts:
Nirmam — Analyst
Candice Pereira — Analyst
Maulik Varia — Analyst
Presentation:
Nirmam — Analyst
Ladies and gentlemen, good day and welcome to The Indigo Remedies Q4FY26 earnings call hosted by Daulat Capital. 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 0 on your Touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Candice Pereira from Tollet Capital.
Thank you. And over to you, ma’. Am.
Candice Pereira — Analyst
Thank you, Ruth. Good evening everyone. I, Candice Ferreira, on behalf of Dault Capital, welcome you all to the FY26 earnings conference call of Indoco Remedies Limited. I would like to thank the management for giving us this opportunity to host the call today from the management team. We have with us Ms. Aditi Panandikar, Managing Director, Mr. Sandeep Bambolkar, Joint Managing Director and and Mr. Pramod Gorparev, CFO. I now hand over the call to the management for their opening remarks. Over to you, sir.
Operator
Thank you, Candice. Good afternoon everyone. Thank you all for joining this call. Let me draw your attention to the fact that on this call our discussion will include certain forward looking statements which are projections or estimates about our future events. These estimates reflect the management’s current expectation of the future performance of the company. Please note that these estimates involve several risk and uncertainties that could cause our actual results to differ materially from what is expressed or implied.
Indopo does not undertake any obligation to publicly update any forward looking statement whether as a result of the new confirmation, future events or otherwise. Thank you so much. Now let’s request Our Managing Director, Ms. Aditi Panandikar for her opening comments.
Aditi Panandikar — Managing Director
Yeah. Thank you, Pramod. Good afternoon everybody and thank you for joining us on our Q4FY26 call this afternoon.
Unidentified Speaker
It
Aditi Panandikar — Managing Director
Gives me great joy to announce that after almost six quarters we are in positive in this quarter for performance. This performance has been possible due to a great acceleration shown by international formulations business both in the regulated markets as well as emerging markets. While in India, as the season did not support performance, quarter four numbers were muted. Anti Infectives and Respiratory in particular gave a significant hit. However, at the level of product wise prescriptions generated.
Almost all our main and important products are showing good growth in prescriptions, emphasizing the fundamental strength of the brand and ensuring that there is great demand for those products in the market. In US we received approval for the ANDA of Liquid orals for Privacytram and Daclozamide. In India we launched a new brand extension of Cyclopam, our number one brand. Our API manufacturing plant at Pataganga made us proud with their Ecovirus score. We were also recognized for our CRO work at IDMA’s annual day.
I’m also happy to announce that as of January this year and even for the month of on max basis for the month Of March, Rexigen M4GEL has become the most prescribed stomatological brand in the market. We also overtook as a company in prescription audit. We have overtaken Pfizer to become the 20th most prescribed company for the number of prescriptions we generate. Last week Indoco entered into an agreement to hive off its softal business in India and Africa to Sunway. This move was made in the interest of our wonderful brands and portfolio which should now get the requisite attention they deserve and therefore grow.
This high walk would also help us at Indoco focus on areas of strength and those which are our core areas for growing the ethical business. The OTC business has also done well and our efforts to add presence of our products with the grocers, the modern trade and quick commerce are underway and should soon give promising results as well. The macroeconomic factors at this time are certainly not at all conducive for doing business, especially as regards the cost of goods and the likely disruption in exports.
We hope as a management to steer our business with responsibility during these tumultuous times. Thanking you once again and I hand over to Mr. Sandeep now to take you through the quarter performance.
Sundeep V. Bambolkar — Joint Managing Director
Thank you Aditi. Good afternoon everyone. Let me first begin with the business highlights. Standalone net revenues of the company for the fourth quarter FY25.26 are at Rupees 4291 million compared to Rupees 3411 million for the same quarter last year and Rupees 3896 million for the immediately preceding quarter, I.e. Q3 of FY26 growing at 25.8% and 10.1% growth respectively. Consolidated net revenues of the company for the fourth quarter are at Rupees 4,559 million compared to Rupees 3,839 million for the same quarter last year and Rupees 4,343 million for the immediately preceding quarter with 18.8% and 5% growth respectively.
Standalone EBITDA to net sales for the quarter is 14.7% at rupees 630 million compared to 1% at rupees 35 million and for immediately preceding quarter EBITDA was 6.6% at rupees 259 million. Consolidated EBITDA to net sales for the quarter is 10.9% at rupees 497 million compared to minus 0.2% at negative 8 million last year and for the immediately preceding quarter 7.3% at 315 million. Revenues from domestic formulation business for the quarter are at Rupees17.39 million as compared to Rupees1851 million.
Major therapeutic segments like vitamins, antidiabetics, dermatology, gastrointestinal and cardiac performed well during the quarter as compared to the same quarter last year. Revenues from international formulation business grew by 94.6% at rupees 2001, 47 million compared to rupees 1,104 million. Revenues from Reg markets for the quarter grew by 78.3% at rupees 1,401 million against rupees 785 million. Revenues from US business for the quarter grew by 77.5% at rupees 546 million as against rupees 308 million.
Revenues from Europe for the quarter grew by 68.7% at 786 million as against rupees 466 million and for South Africa, Australia and New Zealand the quarter grew by the base being small, the revenues were at 692 million as against 122 million. Revenues from emerging markets for the quarter grew by 134% at rupees 746 million as against rupees 318 million. Revenues from API business for the quarter degrew by 23% at rupees 315 million as against rupees 409 million and the services part MSFS, CRO and Indoco Analytical Solutions for the quarter grew by 65.3% at rupees 895 million as against rupees 467 million.
That is all about the business highlights for the fourth quarter and I now request all the participants to put forth their questions. Thank you very much for your patient listening.
Nirmam — Analyst
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask A question may press star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two Participants are requested to use handsets while asking a question. Ladies hands. And wait for a moment while the question queue assembles. The first question is from the line of Sajal Kapoor from Anti FragileThinking. Please go ahead.
Questions and Answers:
Operator
Yeah, hi. Thanks for the opportunity. The performance is definitely a recovery sequentially for sure. And that’s heartening to note. I have a couple of questions around the receivables and the debt, if I may. So the standalone Trade receivables grew 45% while revenues grew grew only about 9% and Q4 alone saw a disproportionate spike. So can you break down the receivables aging and identify which geographies or channels are driving the elongation of collection concerns and confirm what percentage of Q4 revenue was kind of recognized on shipment versus actual receipt?
Because it’s kind of looking slightly disturbing. And the interest payments and the debt. So both the working capital receivables and the MSME payables are getting stretched. That’s one concern. And the other one is the overall debt levels. It has been alarming for a while now. It’s probably getting worse now.
Aditi Panandikar
So I will quickly answer your question. Can you hear me?
Operator
Yes, I can. Thank you.
Aditi Panandikar
And then Pramod will probably give you more details for this quarter. In particular, what you would have seen is that the international business has done so well and typically our collections for international business, especially collections for the emerging market, international business, have a long credit period. So that has probably impacted coming back to the borrowings. And happy to share that efforts are underway to ensure that the borrowings get reduced the earliest. And with performance improving, I’m sure we will be able to do that.
But I will allow Pramod give you answers on some of your concerns.
Candice Pereira
Thank you.
Operator
So Mr. Sajan, as madam mentioned specifically about the receivables, you’re right. Our fourth quarter performance, if you see the in terms of exports to reg market, which is overall up by close to about 20 or 29% out of that emerging market growth is about significant growth, I would say in a fourth quarter where we have receivables longer receivable I would say, as compared to domestic business and API business. So that is the primary reason of receivables, which are number of days of receivables which are going up.
Your second question about the overall loan position that remains more or less same, you know as compared to last year March 25 we are at total consolidation level. We are at 960 odd number, long term 620 crore and the short term of 344 crore more or less. You know that was the same position during last year in between whatever in a repayment commitment were there with the, you know, funders banks which we have repaid along with interest plus you know, additional borrowing in some pockets initially during six months for our, you know, CapEx.
But of course we are very sure in terms of, you know, servicing the debt along with interest with you know, EBITDA number which we would like to maintain during next four quarters. Thank you.
Aditi Panandikar
Additionally, as we have disclosed earlier, there is very tight control on CAPEX now and good effort is going on to bring down the operating expense also going forward. This should all help.
Operator
Sure ma’. Am. And just one follow up, can you help me double click on supplier payables and the MSME dues because they have risen sharply.
Aditi Panandikar
Yes, there has been some, you know, where we have not paid suppliers on time given some of the cash flow situation we had. But I’m confident within a week we should be able to.
Operator
All right, okay, thank you, thank you so much. I’ll rejoin the queue.
Nirmam
Thank you. Participants who wishes to ask a question may press star and one. Now the next question is from the line of Nirma from unique to ems. Please go ahead.
Operator
Yes, hi. Thank you for the opportunity. So my first question is on the domestic business now as you mentioned in the opening remarks also that the season was not good for us. Do you see this growth coming back in the next say year or two. And secondly considering we have seen prescription growth so is there some way that we can, I mean what is the challenge when we see prescription growth but then the medicines are not sold? So one is that. And secondly is there any more optimization on the portfolio front?
So I think we discontinued some tail trends during this year. Also further we sold off some more opthal division also. So any more such revigs for the next year?
Aditi Panandikar
Okay, so I’ll start with your first question on the what we call primary, secondary and tertiary which is the prescription group. So typically the numbers you see in IQVR or any of the agencies like Karma Rac on our products is what we consider secondary, that is what is sold from stockist to retailer and then the number of descriptions we generate, we use it as a measure to understand demand for our products and therefore the absolute uptick at the chemist counter which is tertiary. So if you look at first of all what we call primary, which is the booking of sales that for the quarter ended March is often dependent on the motivation, morale and how many people in your field staff are actually going to do their annual target and they start going a little low.
Despite of all efforts from our side, we always see this kind of a performance. I’ll give you an example for. Let’s take the category of. I mean if we take stomatologicals itself, then as per IQBR we are down only by 8%, but my primaries are down 20%. And then if you look at the prescription on those products, they are all in high growth. What it simply means is that if you are seeing an RX performance Now, then your IQVs should follow after that and unless there is too much stock in the market, your primary should automatically get corrected.
However, your concern about if we are really generating demand, what if our products are getting either substituted or not available for that? This year in particular, we are undertaking a major exercise to reach out to the stockists who stock our products and the retailers. I can give you some statistics. Directly and indirectly our organization reaches around 1,50,000 chemicals. That is both through volume remedies, which is the OTC arm and our own prescription business. However, if you look at availability of cyclopharm, it is available at 3 and a half lakh chemicals.
So generally it is descriptions and demand creation which is expected to make your product available. That is how we work. But typically because our products are seasonal, what always happens is when the season doesn’t come in, you see, the stock is not very motivated to increase the inventory carries on certain products and therefore he goes muted down the line. There are very few shortages because there are stocks in market. Let’s take our product Cigal for example. It is a urinary alkalizer and typically does very well in summers.
But this year in the month of March, I think there were a few rains also and summer did not kick in the way it should have. So Sigal, if you look at internal performance, it is down for the quarter IT is down 10% and QoQ it is down 1%. But in IQVI it is growing and SOAAS prescription on it. And the other day I had a pharma RAC review where they disclosed that in the market there is less than 30 days stock of this product. So typically now FIKA should fire. But these are not things we can always control because always motivating the stockists to purchase from us pretty much depends a lot on many factors including the morale of the Field staff who are going to do their annual target.
I hope that answers your question.
Operator
Yes, ma’. Am. And seconding on the non core.
Aditi Panandikar
Okay, so ophthalmology in particular, I wouldn’t say it was non core for us because we had a division, we tried to create two divisions. We were very bullish on it because as you know we have filed several ophthalmic NDAs in US so as a therapy it remains an area of attention for us. But in India for the last four years we were not able to grow the business too much and it remained very much dependent on whether conjunctivitis came in or not and things like that. And at the size at which it was, we could not give it enough attention.
So that is why the hive other than this, if you look at the present portfolio we hold most of it is coming within the four or five main segments of the company. So you will have products either in respiratory, anti infectives, dermatological, GI or vitamins and minerals which is carried by a gynac division. At this point I don’t see any more such identified opportunities for the India business.
Operator
Okay, and just to confirm, so this division was also not done to tied over the liquidity situation, right? Because
Aditi Panandikar
There is absolutely not. It is a very small division at primary level for internal sales. For the year we have clocked 37 crore in India. And we have to recognize that we are 13th player in this market where companies like NTOR Sunways, even very small organizations are able to get a lead on us obviously because for them it is a very, very fundamentally core area of business. So they approach it differently.
Operator
Okay, understood. Coming to our international business. So we’ve seen good growth across all the markets, us, Europe. So we expect this traction to continue in the next year as well. And particularly for the U.S. Because our sterile products are. I mean the plant is still not resolved. So do you see this growth continuing in the US without appro. Without the FDA approval?
Aditi Panandikar
So you know what we have done, which I said on earlier calls is for our key products we have gone into adding second sites. So much of some of the sterile sales for us that you see in this quarter has actually got billed from those sites and that has helped. So therefore what will really impact us if the plant situation doesn’t get resolved really is the future approvals which should be coming on time but otherwise we are okay. Of course we carry and continue to spend a lot on that bite so that that will ease up area of concern.
And we are trying to resolve that as soon as possible. But other than that US today is not just pair island ophthalmics. We do considerable amount of solid oils. And now we are getting into liquid oils as well. Also the UK and Europe business has done very well. So. And we have a decent order book right now. And I’m sure our team will work very hard to continue this kind of performance.
Operator
Sure. So one question on the interest cost for this quarter. So if you look at the consolidated numbers the interest cost has gone up materially. Is there some forex impact also here?
Aditi Panandikar
Yes. So I think it is particularly common for warren remedies. Therefore it comes in the consolidation. Because there was one loan in foreign currency. And as such it is notional. Unless the war goes on and on and on then it will actually impact us. But maybe Prabhu would like to say something. So
Operator
This quarter exchange lost itself on a foreign currency loan. ECB loan is substantial. Almost a half a portion of this finance cost is towards the exchange. So 20 crore impact.
Sundeep V. Bambolkar
24 crore impact. 24
Aditi Panandikar
Crore.
Operator
Okay. And what would be a issue loan?
Sundeep V. Bambolkar
10 million euro.
Operator
10 million. Okay, I joined back with you.
Nirmam
Thank you. Participants, who wishes to ask a question please press star and 1. The next question is from the line of Kenil Mehta from Boring amc. Please go ahead.
Operator
Ma’, am. I had one question. Last quarter we had a loss of 34 crores. In. We had a network negative of 34 crore. This quarter it’s 82 crores. Any reason why SPP which has seen increase in sales from 35 crores to 48 crores has seen a negative net worth of 50 crores in this quarter increase.
Aditi Panandikar
So. Okay. I think. Okay, go ahead.
Sundeep V. Bambolkar
So Kanil, as you know for HPP
Operator
It is early years. It’s all about investment. So the negative network which you see is the losses incurred during last couple of years. And we expect now this to turn around in coming years. But the network which we are referring is the impact of the losses incurred since acquisition till today. No, no. The last quarter as per your result press Release it was 35. This quarter is 82 crores. So what is the reason for 50 crores jump?
Aditi Panandikar
If you look at. As you know HPT had a historical business of purchase and sale from others. And it typically depends on the portfolio of FPP in that particular quarter. So whenever FPP only sells products supplied by Indoco we do much better. But when they are purchasing finished goods from others and selling that margin comes down. So if you look at sale of FPP and the cogs that is where you See the maximum jump.
Operator
So can you are looking at calculated number which include. Which includes not only a PP but Warren also another legal entity there. Also we have a negative number. So that is both put
Sundeep V. Bambolkar
Together not only FPP but FPP plus warrant.
Operator
Okay, so you have not specified the warranty part in that,
Aditi Panandikar
As you know is in OTC business. And we have very clearly decided for that for at least three years we will consistently support it for advertising and any other things required to build that business.
Operator
Understood. And ma’, am, we had a lot of products in the Europe market. We see based on product basket in 2025 and 2026. But based on your export data, we are not saying that expansion in that product basket except for allopronol and paracetamol and polishing.
Aditi Panandikar
Okay. So what happens is as you know Europe and UK there is major fluctuation in pricing. So sometimes some of these small molecules, if the current business environment doesn’t support in a manner that we should make margin on it, then we choose not to sell. Yeah, Sandeep would like to say something.
Sundeep V. Bambolkar
Yeah, hello. Yeah. See besides Allopurinol and what you mentioned, Nuc, Colchicin, we are also selling pregabalin and Zonisomide very well, these two molecules. So with contact manufacturers of course there’s cetrazene, there’s paracetamol, zonisamide, pregabalin, colchicin. So there are many products. We are not dependent on one or two,
Operator
But we have, we have a lot of uploads like a pixel on.
Aditi Panandikar
A pixel band should come in soon.
Operator
Okay, Understood. Understood. And. And on the API business side as we have got approval for the warrant and amid spark should we see the increased scale up now for that part of business too for outside consumption?
Aditi Panandikar
Yeah. So Warren Remedies doesn’t yet have a reg market approval. So till now it makes key key starting materials for us which we finish in Patal Ganga and sell in the reg market. Therefore Warren Remedies actually carries. We are not able to optimize it fully. Because what is made at Warren Remedies does not fetch reg market prices as of late now.
Operator
And that is partly
Aditi Panandikar
The reason Bottle Remedies financials also get disturbed.
Operator
Understood. And wanted to know any reason why we have got a rule for river but only we have supply very negligible compared to other peers or capture the market share over last six months for US market
Sundeep V. Bambolkar
We got approval only for one strength.
Operator
Okay.
Sundeep V. Bambolkar
Yeah.
Operator
Thank you.
Nirmam
Thank you. The next question is from the line of Molik From BK securities. Please go ahead.
Operator
Hi. Thank you for the opportunity, ma’. Am. Just wanted to understand what has driven the growth for our. So I understand you answered that sterile products which were site transferred drove growth. So what? What else was the reason why we witnessed this growth
Aditi Panandikar
The same quarter last year in particular if you remember, we were undergoing a major part of our master manufacturing cycle at two of our large solid odor sites. Plant one in Goa and Bati 3. Plant one in Goa in particular supplies solid odors to us. And this plant therefore had got impacted as indeed we could not supply it to optimum requirement. And it is not just ophthalmics but we also have a considerable amount of solids coming as well as ophthalmic. What is between us fertile and if I’m not mistaken, I know for the year but quarter it should be quarter
Operator
It is 1012 sterile. Trust is
Aditi Panandikar
Oral solids are. Sterile is only 12 in this. So the rest is all oral solids.
Operator
Okay. Sterile is 12 million and the rest is
Sundeep V. Bambolkar
Not million. We’ve got quite a basket of solid orals
Aditi Panandikar
And they’re doing well. Yeah,
Operator
Understood. Okay. Okay. And Also there was one exceptional gain for 4Q. Can you just help us quantify? I think in the north it was for full year so was not able to understand. Can you help with that?
Sundeep V. Bambolkar
Which number you are referring to? Sorry.
Operator
Around 34 crores of exceptional gain. I think in 4Q number.
Sundeep V. Bambolkar
No, you’re talking about other income. 16. No,
Operator
In the exceptional
Sundeep V. Bambolkar
Operating revenue then it is 16 crore exchange.
Operator
Sorry, sorry
Sundeep V. Bambolkar
Ma’, am. Sorry, my mistake. It is 3.7 crores. Sorry.
Operator
Okay. What
Aditi Panandikar
Is 3.7 crore exception? Some small amounts like revaluation of gratuities etc. Oh, okay. Okay, okay.
Sundeep V. Bambolkar
Related to the labor code.
Operator
Okay, okay. Thank you so much, ma’. Am. Thank you so much.
Nirmam
Thank you. Participants who wishes to ask a question please press star and 1. Anyone who wishes to ask a question may press star and one. Now. The next question is from the line of Nirmam from unique pms. Please go ahead.
Operator
Yes, thank you for the opportunity again. Yes. Two, three questions on the balance sheet item. So one is. This is a entry asset classified as held for sale in the balance sheet about 23 crores. So what is this regarding?
Aditi Panandikar
We have a land parcel we are looking at.
Operator
We’re looking to sell the that line. Yeah, yeah,
Aditi Panandikar
Yeah. It was lying idle for the longest time.
Operator
Okay. Secondly, so in the cash flow statement I could see some provisions for doubtful debt and that has increased year on year. So about 10 crores this year. So Are we expect? So is this in line with what we generally do or that there is some issue?
Sundeep V. Bambolkar
Yes sir Nirmal, it’s a combination of both. One is one of the party where you know, we have supplied some material. They are declared their bankruptcy.
Operator
So that is one. So we have provided for that. And second is this is in line with our, you know, policy for provision for batteries based on the aging analysis. We do provide, you know, for batteries, some old, you know, aging where, you know, we are discussing with them in terms of, you know, certain stocks expiries,
Sundeep V. Bambolkar
Price differences, you know, so on a safer side we provide for those receivables.
Operator
Okay, now coming to Warren again. So this quarter also I think we have a loss and I think because of the advertisement that we did in the World cup or something which you mentioned in the previous call. So what level of OPEX or advertisement do you have budgeted for the next year and what kind of growth can we see in Warren?
Aditi Panandikar
So the business has I think grown from 90 or 90, 92 or 94 last year to 120,
Unidentified Participant
130
Aditi Panandikar
This year. So that is a good jump. All our key brands, Sensodent, kkf, Kidodent as well as the new launches DSP and DPC of the Sensodent family, the Sensordent DSP DPC has been well received. The first consignment which has gone into the market. We are now looking for additional orders and as such the division looks set to continue to grow. Of course we need to add more products to the basket in order to justify because we have close to 350 people in the field. So with three or four products it’s not very effective.
We have a few toothbrushes also which are being called fillers. They are doing well now. But Kero Dent in particular, which used to be a RX product only has been taken otx. So both the ethical team as well as the OTC team sort of focuses on this brand and it’s doing very well. So with the toothpaste I have less concerns. Despite all the advertising expenses, etc. Etc. The toothpaste side of the business at Ebitdas is doing decently. All right. It is the API capex done and the operating cost at API level from where we are really not able to sell anything right now because most products are under validation.
So once you see the API side turnaround which is likely to take couple of quarters more then the warrant remedies standalone will also start looking good.
Operator
Okay, so about one more year for the Approvals and the validations to get over. Yes,
Aditi Panandikar
Yes.
Operator
Okay. So again on the emerging business we saw pretty good growth this year and so you’ve mentioned in the past calls that we have a good field staff in there and doing good work. So do you expect this to continue over the next two, three years? Do you have the portfolio basket, the products and approvals?
Aditi Panandikar
Yes, certainly. I think. Sandeep,
Sundeep V. Bambolkar
I’ll just come in here quickly. Yes, we do have a very impressive basket and a portfolio and we are mainly operating in Eastern Africa, that is Kenya, Tanzania, Zambia, these three countries where we have field force on the ground and about eight countries in central West Africa, that is Ivory Coast, Mali, Burkina Faso, Benin, Niger, Cameroon, Senegal and Chad. So these are our main areas and it is absolute promotion, scientific promotion that is getting us prescriptions and secondary business is more important to us which is actual sales from the grossest, as they are called, the stockists in these countries to the retailer and that is being measured.
We also have a software installed there. Hi doctor. So sales force effectiveness is getting measured in a very proper way and we are measuring the per head yield as we call it, that is how much per representative we are getting in terms of euros. So to answer your question, in short, yes, the confidence level is pretty high for next two to three years on this business.
Operator
Understood. On the MMP that we had undertaken. So you know, till last quarter we were still facing some challenges, some customer approvals were delayed, everything. So now is everything solved. We can only see growth from here. Business did show up, good upsell, but any more challenges left?
Aditi Panandikar
If I’m not mistaken, a very small livery of paracetamol remains in the old smaller size in Baddi one, just one. But otherwise almost all of the customer approvals have come in. So we should be able to scale Europe and scale it with additional margin from here.
Operator
We should still see some margin benefits coming in the next. Sorry
Nirmam
To interrupt. May we request you to please rejoin the queue sir, we have other participants waiting for the turn.
Operator
Sure,
Nirmam
Thank you. The next question is from the line of Madhav from Shasta Capital. Please go ahead.
Operator
Hi ma’. Am. Good evening and congratulations for the good numbers. Yeah madam, see you know. So what is the number depth expectation for this financial year and for the next financial year as well?
Aditi Panandikar
As we said in IRL alone there is 630 crore debt which is
Operator
Combined
Aditi Panandikar
And for the total entirety it is close to 950 of all this. Our short term debt which has to be repaid will be around 300 crore right.
Operator
So next year repayment is 146. 140
Aditi Panandikar
For the next year. Yeah. So 140 crore to be repaid in the next year coming year.
Operator
So during final year 2027 is there any plan for any reduction Madam?
Aditi Panandikar
Yeah obviously
Operator
We
Aditi Panandikar
Are working on it.
Sundeep V. Bambolkar
So what would be the number? Is it 150 bunches? 147 crores is for this finance year for the next financial year.
Aditi Panandikar
No, no one for. Okay. Yeah
Operator
So Mr. Madhav, so next financial year which is 2627 we have commitment to repay 140 another 140 in a year after that and almost similar amount after in 2029. So about 140 crore every year for next three years our target will be to repay or to prepay a little more than this. Okay, is there any additional capex done? You know the normal capex. Are we planning for any capacity expenses kind of thing? Is there be either current year or next year?
Sundeep V. Bambolkar
No, no we don’t plan any major capex now next two years.
Operator
Yeah. Okay, thank you. On the. On the Europe side I know when I was talking to the m. Sandeep during Q2FY26 call so there was an update from. Is that you want to update on you know Clarity Pharma There was no 15 products for the 18 months. I think that 18 months are getting completed by now. So current book does Europe is doing well and is there any contribution come from that or so any light manager want to share with us on the Europe the Clarity Pharma business?
Aditi Panandikar
Clarity Pharma as Sandeep had told you that time had several products and probably at that time in Q2 when he spoke to you, few were being transferred. Now some more products especially in liquid category are also going. However as I said in answer to one of the calls earlier we are very careful. The whole purpose of being on ground in UK is to be able to get more margin and not lose it. So if we see that the market is not opportune on price front then we hold. So in that manner Clarity business is yet to come to a sizable level where we can talk about it
Operator
Anyway that’s natural and you are taking active participation depending upon the market situation and the domestic brand actually. So I think though there is we could not know other than the legacy product we cannot bring any other product for the flagship rather than the audits to take it up. So. So
Aditi Panandikar
We have done extremely well on new launches Sir, I think fourth quarter total new launch has contributed to more than 2 crores
Operator
Total 20 crore
Aditi Panandikar
In
Operator
This particular financial year. In the financial
Aditi Panandikar
Year, 20 crore. Yes. And we are getting a sizable amount in new launches and they are doing very well.
Operator
So
Aditi Panandikar
Products like Sigal, PM6, Dropizin, Drotitech M. Then we have nosicodi OHG3, we have weapon CV opens and lot of new products as well as brand extensions being launched. The latest product which we have launched in this quarter is Cyclopam AC suspension. There’s also Strawberry. All our new products are doing well, received pretty well. So on that front I think. I’m sorry,
Operator
If you can add more these things in the management presentation. Thank you. Thank you. Thank you.
Maulik Varia
Thank you. The next question is from the line of Molik from BNK securities. Please go ahead
Operator
Ma’. Am. Thank you for the opportunity again just wanted to understand what are our growth triggers for the regulated markets for the next year which is FY 2728.
Aditi Panandikar
So you know, for the market of course the Europe business of base contract manufacturing will continue to grow. But more than top line growth, that business is likely to give us better margins in the coming year because it will be manufactured in plants which has completed all its MMP scale ups and all those things. In us, while historically we were only dependent more on sterile, we have now added a substantial solid oral base and that is also doing very well. In this year both in Europe and US we intend to launch our liquid orals which is not as crowded a space as, you know, other solids and we expect to do well here also.
So there are a lot of plans, lot of products filed being approved and getting approved also. And you will see a good combination of efficiency in manufacturing with the value add of, you know, good orders in place helping us grow these businesses.
Operator
Okay. Okay, thank you so much. Thank you.
Maulik Varia
Thank you. The next question is from the line of Kennel Mehta from Boring emc. Please go ahead
Operator
Ma’. Am. Would like to know what is the category utilization for our oral business at Warren Remedies out of the four lines, what are the initiatives we are taking to increase ourselves export or contract manufacturing for some.
Aditi Panandikar
Yeah, thank you for that question. Because we have started exports from that site through at this stage to South Africa. Manufacture of toothpaste. I don’t know whether to come in this water.
Operator
Yeah, it has 37
Aditi Panandikar
Lakhs. A small amount to start with and we are seeking other such opportunities. Meanwhile about four lines you said no. So we have actually installed only one. So all the provision was made. We have installed only one. There was a second line of mouthwashes. But we are not gone for that yet because we continue to make mouthwashes at other locations. So capacity utilization of the Tuscan space block is not a very big concern for us because we have set up a state of art unit and we are able to make 5,000 kilo batches with only five people inside.
So that is our better managed plant. So we really have good control on efficiency in that plant. It is the API plant as I said where we have both capital expenditure done. We also have operating expenses because we are doing validations of products there. But these validations are not resulting into sales right now because those products are not yet approved out of that site and that is putting pressure on the entire Ward and Warren remedies numbers. I hope I can. And as somebody said earlier, if it takes us one more year to get red market approval, we are trying to hasten it by varying sight of a product from Patagonia to Oric.
Hopefully that should bring us FDA faster but I cannot promise that.
Operator
Understood. And one more question ma’. Am. Over India business over last few quarters we are seeing growth in cardiac and anti diabetes. Is it due to low base or we have launched new products?
Aditi Panandikar
No, it is. Our base is very low. Which is why you’re seeing the.
Operator
Understood. And what was the actual revenue base you will see growing for the India business apart from the OTC in line with IPM or it will be grow. Understood, Understood. Understood. And during the quarter FPP was technically profitable as we have seen in last quarter. If we exclude the warrant losses,
Aditi Panandikar
No FTP. As Pramod explained, we were impacted with some extraordinary costs which were taken at the end of this quarter on expired products etc. Which is why it has been a hit. Negative
Operator
4 crore.
Aditi Panandikar
Almost 4 crore was the impact seen. But also the product mix. So we actually looked into this because the COGS on the Q4 sales of SPP have been extraordinarily high during. Yeah, yeah, yeah. Because some of our products are not. We do have a few products in our market which don’t get very good margins. And when we sell more of that or when we have to do a shelf state, shelf stock adjustment or things like that in that quarter, you see a hit
Operator
Going forward, would we see that again or it will reduce as we are seeing increase in.
Aditi Panandikar
It should reduce.
Operator
Understood. Understood. And can we get the new product sales revenue mix in the overall India business during the year of quarter?
Maulik Varia
I
Aditi Panandikar
Think we have done close to 20 cr
Operator
In new
Aditi Panandikar
New launches this year in India and one of the highest is come from Drotitech N. It has done well your Vespasil bracelets. There are many products. What you could do like somebody requested is possibly from next time if possible in the NDA. We’ll give you a note, a line or two on this.
Operator
And ma’, am, if we exclude the anti respiratory and anti infective which has seen degrowth over base controller you would have seen the volume growth. Is it correct?
Aditi Panandikar
Yes. There is another category which got impacted in this quarter in particular which is the urological. This is our urinary alkalizer. But like I explained that should kick off this. So you know because of season these. There are shifts in these products. You get it sometimes in Q4 then sometimes in Q1 of the next year depending on how summer or rains kick off. So for India business it is better to look at a mat performance and to review whether the products are doing all right, what is happening to them.
Because otherwise there will be these kind of peaks and trough.
Operator
Understood? Understood. And ma’, am, the asset for held sold land is it, is it at the book value or do you get a more value than we have shown on the balance sheet right now
Aditi Panandikar
We should get more. This is book value.
Operator
Okay, Understood. No questions. All the best.
Maulik Varia
Thank you. A reminder to the participants, anyone wishing to ask a question may please press star in one. The next question is from the line of Madhav from Shastra Capital. Please go ahead.
Operator
What is the OTC revenue for the current quarter? Madam,
Aditi Panandikar
For the year it’s 120. I think this quarter is
Sundeep V. Bambolkar
27.
Aditi Panandikar
27 crore. Yeah.
Operator
Okay. And so what is the, you know, plan for? I mean so how much reduction in interest expenses can be considered for both standalone and consolidated for the current financial year?
Sundeep V. Bambolkar
So if you see our repayment schedule is 140 as I mentioned and our average interest rate is in the range of 8.5 to 9. So you can you know consider that much reduction in overall interest cost.
Operator
Okay, so then, so the 960 minus 140 means. So 960. 140 mails around. 140 cross relation will be there.
Sundeep V. Bambolkar
Yeah. For that 40 crore repayment if you consider in a staggered, staggered manner then average cost of borrowing is just short of 9%.
Operator
Thank you. Thank you very much.
Unidentified Participant
Thank you. A reminder to the participants, anyone wishing to ask a question may please press star in one. As there are no further questions from the participants. I now hand the conference over to the management for the closing comments.
Aditi Panandikar
Yeah. Thank you everybody for joining us. On this discussion and call. And for the very interesting questions, you must wishing everybody a great weekend ahead. Thank you.
Operator
Thank you.
Aditi Panandikar
Thank you. Thank you very much.
Maulik Varia
Thank you, members of the management team. Ladies and gentlemen, on behalf of Dollars Capital, that concludes this conference call, we thank you for joining us. And you may now disconnect your lines. Thank.