Innova Captab Ltd (NSE: INNOVACAP) Q1 2026 Earnings Call dated Aug. 08, 2025
Corporate Participants:
Unidentified Speaker
Ayush Kumar Garg — Head, Investor Relations
Vinay Lohariwala — Managing Director
Lokesh Bhasin — Chief Financial Officer
Analysts:
Unidentified Participant
Parth Mehta — Analyst
Sudarshan Padmanabhan — Analyst
Avnish Burman — Analyst
Abdulkader Puranwala — Analyst
Pritesh Chheda — Analyst
Presentation:
operator
Ladies and gentlemen, good afternoon and welcome to the Innova Cap Tab Ltd. Q1FY26 earnings conference call. This conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectation of the company as on date of this call. These statements are not the guarantee of future performance of the company but and it may involve risk and uncertainties that are difficult to predict. As a reminder, all participant lines will remain 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 the operator by pressing Star then zero on your touchstone telephone. Please note that this conference is being recorded.
I will now hand the conference to Mr. Ayush Kumar Garg from Innova Cap Tab Limited for opening remarks. Thank you. And over to you.
Ayush Kumar Garg — Head, Investor Relations
Thank you, Ryan. Good afternoon everyone and thank you for joining us on our earnings call today to review the operational and financial performance for Q1FY26. We have here with us Mr. Vinay Lohariwala, Managing Director, Mr. Lokesh Basin, Chief Financial Officer and representatives from SGA, our Investor Relations Advisor. I trust you had the opportunity to review our financial results and the investor presentation, both of which are available on. Our website as well as on on the stock exchange website. The transcript of this call will be posted on the company’s website within the next week. Should you have any further questions after this call, our investor relations team will. Be happy to assist you
With that. I’ll now hand over the call to Mr. Vinay for his opening remarks. Thank you. And over to you sir.
Vinay Lohariwala — Managing Director
And over to you sir. Thank you. Ayush. Good afternoon and thank you all for joining us on today’s earning call. I am pleased to report that Innova Captive has continued to demonstrate strong growth momentum in Q1FY26. We recorded revenue of 352 crore during the quarter making a 19% year on year growth despite drop in the API prices. Profitability also saw a significant boost with ebitda rising by 28% to 57 crores. As part of our ongoing efforts to drive strategic clarity and operational focus, we have reorganized our business into two streamlined verticals, CDMO and branded generics.
With Saron now fully integrated within the Innova framework and keeping in mind our business modality, we believe that this new structure better reflects the way we operate today and how we create value across our portfolio. The CDMO business now comprises our legacy CDMO operation Saron business as well as part of our international branded generic portfolio. That operates under a CDMO framework. The Branded Generic business includes our domestic branded generic business along with the portion of the international branded generic portfolio that is run on a front end on branded model. We believe this reclassification will provide greater transparency and better align with our long term growth strategy and enhance stakeholders understanding of our business performance coming to each business area CDMO Business we contribute to we continue to be the partner of the Choice for over 300 global pharmaceutical companies.
Over the years we have expanded our offering to a comprehensive portfolio of over 3,700 products across multiple dosage form. The business contributed contribute 71% of our total revenue in Q1 FY26. We remain focused on deepening existing relationship while building new partnership to drive sustainable growth. Branded Generics Our branded Genics business signifies our front end operation with direct presence across India and key regulated and semi regulated market across the globe. Over the years we have achieved significant strides in the business by consistently adding new products and thorough market expansion both in India and other international markets.
Now let me talk about our manufacturing capability which remain our key business driver. Enhancing these this year we commercialize our greenfield facility in Katua Jammu in January 2025. I am pleased to inform you that the scale up is going as planned. We are witnessing strong interest from our CDMO client as well as good demand in branded Generic business. This gives us confidence in a shift ramp up in the coming quarter. Looking ahead, we are seeing strong traction across both our business area partner led CDMO and front end branded generics expanded product portfolio, Deep client engagement and geographical expansion with our branded generic business both in India and internationally will be the fuel for our growth journey in upcoming quarters and years.
We are proud to be progress we have made and remain committed to executing our strategic roadmap with discipline and agility to drive sustainable growth across all our verticals. Thank you once again for your continued support and trust in the Nova captive.
I now hand over the call to Mr. Lokesh to take you through the financial performance in more detail.
Lokesh Bhasin — Chief Financial Officer
Thank you sir and good afternoon everyone. I will now take you through the Financial Highlights for quarter one FY26 our consolidated revenue stood at rupees 351.5 crore resisting a year on year growth of 19%. CDMO business which constituted around 71% of the total revenue in the quarter clocked rupees 249.5 crore of revenue as compared to rupees 230.1 crore registering year on year growth of 8%. Enhanced client traction both new and existing served as the main catalyst for growth. Branded generic business delivered stellar growth of 59% to 101.2 crore. Fueled by broader geographic reach and increased penetration in the domestic market.
EBITDA grew to rupees 56.6 crores for the quarter versus 44.3 crores in Q1FY25, signifying solid growth of 28%. EBITDA margins improved to 16.1% vis a vis 15.1% in Q1FY25, mainly supported by expanded gross margins. PAT improved 5% year on year to rupees 31 crores. Reflecting resilience in the face of increased depreciation and finance expenses. Pat margin stood at 8.8%.
With this, we would like to conclude our opening remarks and open the floor for question and answers. Thank you very much.
Questions and Answers:
operator
Thank you. Ladies and gentlemen, we will now begin the question and answer 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 use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Ladies and gentlemen, a reminder. If you wish to ask a question, please press star and 1. The first question comes from the line of Parth Mehta from Vallum Capital. Please go ahead.
Parth Mehta
Yeah. Hi team. Congratulations on the good set of numbers. I have a few questions. Firstly, is it possible to provide the new revenue new segmental breakup for the previous quarter?
Vinay Lohariwala
You are seeing the reorganized number for previous quarter, right?
Parth Mehta
Yes. Yes.
Vinay Lohariwala
Surely we will work out and Ayush will reach to you offline on this. No problem.
Parth Mehta
Second is possible to share what would be the revenue from the new Jammu plant for this quarter.
Vinay Lohariwala
Okay. And what is your next question? I may be answered maybe to answer you one. Go.
Parth Mehta
Yeah, sure. So earlier you have mentioned that revenue from the Jammu plant will be coming from the existing customer base by gaining the wallet share. So what is your strategy to gain the wallet share? And what would be what is the differentiating factor versus the competition? And what is the ratio of the outsourcing that is done by your clients?
Vinay Lohariwala
Okay. See the Jammu revenue anticipated for this financial year as we submitted in our earlier discussions is 400 crores. See this 400 crores of revenue was estimated on constant pricing of our API which is a key raw material for us. As everyone knows, during for last few months the EPI prices are showing a declining trend which as high as 20% in certain cases. So we are still monitoring the situation and we should be able to reach to a final conclusion or a more concrete conclusion where our this year of Jammu revenue will lie and subject to the stabilization of EPA brasses.
Parth Mehta
Got it? Am I still in my question? Yeah, please continue.
Vinay Lohariwala
And just to update. Our current quarter’s revenue for Jammu’s plant was 60 crores.
Parth Mehta
This would be including the transfer, right? The product that would have transferred from public.
Vinay Lohariwala
Yes, yes, yes.
Parth Mehta
How. How much of that would would be the transfer from Badi.
Vinay Lohariwala
So that is a bit difficult to comment on. But the overall revenue from The Jammu is 60 crore.
Parth Mehta
Okay, okay. That. That helps. My second question was on the strategy. What would be the. What is the strategy to gain the bullet share the differentiating factor versus your competition. And what is the ratio of outsourcing that is done by your clients.
Vinay Lohariwala
So the. If you see this facility, Jammu facility is built with the 480 crore investment. So it is up to mark with the CGMP norms and all the automation is in place. So as the facility is new and is come out very well. All of our big customers are auditing us visiting our site. And from there also we are getting good comments that the plant has come out very well. Right? So facility wise we are. We are having a good age over our competitors. That being a new facility and everything has been taken care. So as far as the productivity or the output is concerned or the zero defect concept is concerned, we are having a very good ace.
And that is also a very attractive point for the customer also. And the other part is like ensure supply. Because a large capacity in CDMO supply chain supply, timely supply is very very important. So there also we are having a winning ACE. And third but not the least. But the third one is the prices. As you know that we have planned some incentive pass through model, right? So that pricing is again in our favor. So all these 34 points are in our favor. That’s why we are hopeful that we will win more and more contracts in Jammu.
Parth Mehta
Right? Got it. And what is the. What is the strategy to gain the wallet share or strategy to utilize this facility?
Vinay Lohariwala
So we have the relationship with the all top companies in India domestic front as well as we will register our plants in the row and regulated market as well. So that is that how we will. We are approaching our partners regularly and we’ll try to get the maximum product what we can manufacture in Jammu for onboarding of that. Right?
Parth Mehta
Sir, Just one last thing wanted to understand. We have seen higher growth in the exports business. And earlier if I Remember you mentioned that we were having some capacity constraints to cater with the export market. So have we started some manufacturing in the Buddhi plant for the exports market or from how are we getting this export revenue? From which segments or from which geographies also are we getting this revenue?
Vinay Lohariwala
So capacity wise like if you see that in Jammu, in Baddy we have like a tablet and being new facility in Jammu our capacity constraint has been already been removed. And in general category we have the free capability a capacity in tablet capsule, the only oral liquid. The section is now we have the constraint. Otherwise there is no concern as far as the capacity is concerned. So once we if we are getting the new product registered continuously from the row and the other market and there our export is being started. So this quarter I think we have shown a good growth in the export market as well.
Parth Mehta
Sure. Sir, just one last on the generic side if I want to. Just wanted to understand there is. There has been a huge growth in the generics segment for the quarter. If. I see why. So what? Which therapeutic segments or from which geographies would the growth have. Would the growth have contributed for the generic business?
Vinay Lohariwala
So that you are talking about the branded generic business. Yes, yes, right. So that branded generic business includes our export as well as domestic branded generic business.
Parth Mehta
Yes, yes, I get that. But which therapeutic segment this quarter we.
Vinay Lohariwala
Have a very good growth in our export market. Export branded generic business. That’s why as a overall composition you are see you are looking at the growth.
Parth Mehta
Yes, I get that. Just wanted to know which therapeutic segments are from which geographies this growth would have come.
Vinay Lohariwala
So, so therapeutic category, it’s a overall business spread across. Across 10 to 15 therapeutic category. And as far as the territorial is concerned. So that is from the rw.
Parth Mehta
Okay sir, thank you so much for answering all the questions.
operator
Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and 1. The next question comes from the line of Sudarshan Padma Bhavan from Ask ndpms. Please go ahead.
Sudarshan Padmanabhan
Yeah, thank you for taking my question. Sir, my question is to understand more on you know, the plant. I mean I understand that you know the Jammu plant is new and there are some products getting shifted from Badi to Jammu. And you know, that is why we are seeing a drop in sales of Buddhist. But you know, growth happening in Jammu. But if I am trying to understand say one or two quarters down the line I would understand that a fair amount of shifting would happen and Buddhi will come back to, you know, its usual, you know, revenue run rate.
Just to understand, you know, in terms of timelines where are we in terms of normalizing, you know, the entire buddy plan, the transfer. And second is earlier, you know last quarter when we talked about the 400 odd crores. I remember that, you know we mentioned Jammu is incrementally going to contribute 400 crores. But the rest of the business, that is typically the international, you know, business will also grow. So the number was overall number is expected to be over, you know, 400 crores. That is Jammu plus others. Would there be a meaningful drawdown in, you know, your body plant, you know that could be a negative surprise.
Vinay Lohariwala
So overall if you try to understand the mathematics behind the numbers. So there is I think a net increase of 60 crore quarter on quarter. So if you multiply by four, that is translating approximately say 240 crore on yearly basis, right? So if we see 400 plus our statement was like that 400 crore from Jammu and plus few percentage point growth from even the baddie. So that is deeply affected by the price erosion especially in the antibody segment like the amoxicillin or the potassium clavinate or the cephalosporin. These price in few of the API hit by more than 20% as Lokeshi is already covered.
Still even the in Q1 we have maintained the trajectory of 250 crore, right? I think, I hope you understand what I am trying to say. Even in Q1 we have shown the trajectory of the 250 crore, right? So we are very hopeful that there should not be any further decrease in the prices. Still be able to maintain what we have stated earlier, right? The Jammu facility is being audited by all the leading customer. And product onboarding are expected in the Q3 Q4 at a much rapid speed.
Sudarshan Padmanabhan
Every quarter going forward. So there’ll be a quarter on quarter increase in the utilization.
Vinay Lohariwala
So we have already in the last teleconference we also covered that it is how fast we reached at a hundred crore level at Jammu facility. That is our priority as a company. It is our top priority that how fast we reach at a 100 crore level from Jammu.
Sudarshan Padmanabhan
And sir, to understand, you know, I understand that API is a pass through. We work on a cost business model. But two things here. One is if the API prices come down and I understand that your anti infective business is seeing pricing pressure. The second I would also understand your Jammu facility has capabilities of manufacturing more complex product. Is it possible to shift, you know one towards more complex products. And in terms of your contract, you know I. If I Look at the gross margins are substantially improved. One is of course the Jammu facility tax coming back to you, the gsp.
The second is when the prices come down, do we work on a Ebitda per kg in the sense that optically then your gross margins look higher then your EBITDA will not change, you know, irrespective of your top line. So just wanted to understand you know these two.
Vinay Lohariwala
So your question regarding like complex product. We are already working on that. Our R and D have developed a couple of product so that there is validation is going on there. So especially in the category of rest pools and the other style products, we are again working on the few, we are exploring the few new products as well. So that can improve our GC as well. Right. And.
Sudarshan Padmanabhan
The second question is to understand the gross margin. Yeah. So one is your GST that you’re getting back. The second is if the API price comes down, if there’s a loss contribution per kg, if it comes down then your optically margins gross margins look higher. If you’re working on a margin basis then it hits you on both sides. I mean you’re. You know, so just wanted a clarity.
Vinay Lohariwala
Yes, yes. Yeah. So. So our pass through model is like we have the two component of our gross conversion. One is, is constant and it is fixed. And the other part is the based on the profitability is the percentage base. So even if you can say that the 50, 50 type arrangement. So if the price goes down then still our absolute per case per tablet or per capsule or per unit also goes down.
Sudarshan Padmanabhan
Okay, so we are partly getting impacted. So I mean it’s not.
Vinay Lohariwala
Yeah, yeah. Partially. Generally what happened the API price move from 5%, 10% here and there. So in that case there is no substantial impact. But this time we have seen that the prices have crashed like potassium clavina at 18,500 to 13,000 level. So that creates a very big turmoil for the market.
Sudarshan Padmanabhan
So one final question before I join back with you is you know, on the cost side, you know, if I look at the fourth quarter, you know versus this quarter, we have as you mentioned seeing a jump of about 50 60. But if I look at the operating cost, the operating cost has also improved on a Q on Q basis. The rational what I wanted to understand is today when we are running at 60 crores, I mean this is going to only improve from here. 60 can go to 70, 80, 100. I mean faster 100 is good for everyone. But as the operating leverage happens, I just like to understand from here on how do we see the cost curve coming down?
Vinay Lohariwala
You are absolutely right. Our major cost especially on employee and other operating system is more on a semi variable basis. So as we have already around 60 crores from Jammu and Birdie is already running at steady state level from here the increase in revenue or increase in operation would not result in the proportionate or pro rata increase in cost. So of course at we are still monitoring the situation. But as and when the Jamu plant will reach to a certain level of say 100 crores of revenue per quarter, we should be saving a slightly better position from here.
Sudarshan Padmanabhan
So. So any number that you have or you know, we will reevaluate it once.
Vinay Lohariwala
We see Jammu is still in a ramp up stage. And there are lots of variables and moving parts and we are observing the situation. We are still in the process of customer onboarding. So a firm number may not be. We may not be able to share as of now.
Sudarshan Padmanabhan
Sure, sir. And anti infectors as a proportion of your overall business, would it be meaningful enough to, you know, see a meaningful dent in your earlier guidance or you know, probably we would still be plus or minus that you know, figure that you earlier talked about in the fourth quarter.
Vinay Lohariwala
See our overall revenue, our overall revenue is a very complex combinations of our capabilities, our categories in which we produce, our dosages, the clientele, the geographies. So the exact impact of API reduction as of now may not be able to reveal or share. But yes, it is slightly having an impact on our overall revenue. But as I said that we are monitoring the situation very closely and hopefully if the prices stabilize we should be able to retain our guidance.
Sudarshan Padmanabhan
Sure. Thanks a lot sir, I’ll jump back to you.
operator
Thank you. The next question comes from the line of Avnish Burman from Vikarya. Please go ahead.
Avnish Burman
Yeah. Hi. Thanks for taking my question. My question was again on the export side it seems that you know the SIFA business has been transferred from Baddy to Jammu and has catered to the export markets because of which the export revenues have grown so fast. You had mentioned earlier that there was a backlog. So my question is now is the backlog over or there is still backlog that Badi can continuously supply and on a continuous basis you can move the domestic business from Buddhi to Jammu.
Vinay Lohariwala
So how the product transfer is working that we need to have the client consent for that. So as we are getting the client consent for transferring, we are transferring our domestic business from say Jammu Cephalosporin to. Cephalosporin to Jammu Cephalosporin. So I think the transfer activity will go up to the third or max. By up to fourth quarter this year all these events can will be closed. And you your analysis was perfect. That due to transfer of few business from we have created a vacuum in the body capacity. So that was fulfilled with the export orders.
Avnish Burman
Yeah. So I’m guessing that earlier your but the FIFA line was 100% utilized and the other capacities still had empty capacity. So my guess is that what is being catered to the export market from Baddi incrementally is the FIFA orders only.
Vinay Lohariwala
Yes. So that’s why we call it the incremental business. Yeah, correct.
Avnish Burman
So my question was that as you transfer more to Jammu, do you have sufficient export orders to fill that FIFA line So that you know the export growth comes very very strong in the coming three quarters till the time you keep canceling from Jammu.
Vinay Lohariwala
So again Avinardi, this is a very complex question and even commenting on all these things is very very difficult. Okay. Because the order flow, order floor, then again we have the tablet capsule, dry syrup, dry powder, inductible, different line systems. But as we progress our planning is that the baddie surplus Warren will be hundred percent move towards the export oriented business and the Jammu facility as we have the domestic GST benefit as well. So that will cater to the domestic business.
Avnish Burman
Yeah, that makes sense. I was just trying to get an indication of the export growth. If you look on a full year basis like the export growth that you’ve shown 59% as in the branded generic growth. Because now we don’t know exactly how much is export. But the branded generic growth of 59% is that going to sustain or is that going to come down on a full year basis? If you look at it.
Lokesh Bhasin
See, we. Are still working on it. See in coming quarters my branded journey business is going to show a healthy growth trend. Both in which constitutes both domestic as well as my international market. The exact exit percentage, we’re still working on that.
Avnish Burman
Okay. Okay, fine. Second question Lokesh for you. I can understand that the sga, I mean the other expense has gone up because of Jammu. But if I look at the standalone business, any increase because of Jammu should also reflect in the sequential increase of other expenses. On the standalone side, as you look at standalone sequential increase in other expense it’s 3 crores. Whereas on the console level it is 6 crores. So apart from Jammu also there has been some increase in cost on a sequential basis. If you can give some color.
Lokesh Bhasin
Yes. So see my console results Consist of all three legal entities which is Innova, Captech, Univentis as well as Share and Biomedicine. You rightly said the standalone reflects my Inova’s Baddi as well as Jammu operations and cost. The rest of the cost which we see which you see in console comes from slightly from Univentis and Sharon also.
Avnish Burman
Yeah. So I mean this 40 crores of console is that expected to grow even higher from here? Or how should we see the other expenses go on a consolidation.
Lokesh Bhasin
See Abhiji exact number I may not be able to tell you as of now. But see these other expenses consists of. If I talk about console it consists of my manufacture, manufacturing operation, other expenses which is both in variable as well as semi variable nature. Univentis which is mostly towards. Mostly towards my semi variable. Most towards fixed expenses and Share on. So it all depends upon how each and every business grows and how the cost response.
Avnish Burman
Okay. Okay. Thanks. Thank you Vinaji.
Lokesh Bhasin
Thank you. Thank you.
operator
Thank you. Ladies and gentlemen, if you wish to ask a question please press star and 1. The next question comes from the line of Saket from Sakari Capital. Please go ahead.
Unidentified Participant
Hi. Am I audible?
Vinay Lohariwala
Yes sir.
Unidentified Participant
Yeah. Thanks for the opportunity and good set of results given the difficult circumstances. So sir, first question would be on API pricing. So is API pricing largely being say the dip in pricing is driven by Chinese dumping Or do you see over capacity in say domestic space also? 7 domestic APIs are also seeing price headwinds.
Vinay Lohariwala
So let’s say post Covid the capacity expansion is the. Is also the one of the reason of the decreasing in the price and the post Covid let’s say like the pang or the 7 ACA or so whatsoever the the core KSM. So there the. There is. There is a sufficient expansion in the capacity. So that is one of the big reason in the drop in the price.
Unidentified Participant
Got it. Got it. Do you see this? You know one concern that investor community is having that you know we are also seeing similar kind of capacity expansion in formulation space. So your Jammu plant is also a very large capacity. Other listed CDMO players have also come up with recent capacity. Then few CMO players like Lee Ford have also come up with capacity. So do you think that this playbook being repeated in the formulation space as well? So which is putting say some bit of pressure, pricing pressure beyond the API pricing. So just my simple question is is the competition on the rise in the formulation space as well? Sir.
Vinay Lohariwala
So the capacity wise if there is an increase in capacity vis a vis we have the market expansion as well. So let’s say overall if the market is growing with the 10 12% so in the same 6, 7 years you need the doubling the your capacity otherwise there will be a scarcity of the capacity. So these are the balancing every time, let’s say the balancing demand and supply balance always goes on. So if we see from our Innova perspective our new capacity is having a good fiscal incentive. So we are not having any such challenges.
Unidentified Participant
Got it sir. So another question would be to this schedule and implementation. Right. So there were possibilities that you know, few smaller or marginal players might go out of business because they might not be able to, you know carry out all those activities that the regulator is asking them. So do you see that in anticipation of them going out of the business. So they are also you know say dumping their products. So so the channel inventory might be slightly on the higher side in the formulations space. Is this something that you are seeing on a market basis or something? This is just more of an interpretation.
Vinay Lohariwala
So this is difficult to comment sir on these questions.
Unidentified Participant
Okay. And sir, another question is you know this GST benefit, so in case there is say any change on GST rates of say pharma products and something that we are catering to, does that also have an impact on the kind of GST incentive that you would be getting? So like I think it’s right now at 12% slap. So if it moves to 18 or it comes down to 5 and does that also impact our incentives? Sir.
Vinay Lohariwala
Say if the GST rate reduces then we will be adversely impacted. But let’s say the, the total incentive available to east is 6. Let’s say that incentive is like approximately 75 crore. That is fixed. So to achieve the 75 crore incentive today we need to sell Approximately let’s say 600/620 crore. If the duty reduced to say 8% then we need to make the 900 crore sale to achieve that incentive.
Unidentified Participant
Okay? Okay. Okay.
Vinay Lohariwala
And if it become 18 then then say let’s say we are only 400 crore sale will be subject to the incentive.
Unidentified Participant
Okay. Okay. So then we can reach those levels. So broadly I think some bit of you know, say change in the revenue would you know help us arrive at that. Depending on the rate changes. Right. So that’s how you are going to calibrate your.
Vinay Lohariwala
But again sir, all these questions are very hypothetical that I don’t think so any GST reason will change so sudden.
Unidentified Participant
You’re highlighting because there’s always that, you know, rationalization of lab So I was just wondering if there’s something on the works but fair point that you said that you know these are hypothetical. So another question on the universe part. So your branded generic has been doing quite well even in Q4. So just for our understanding, is that a say ethical marketing business where you reach out to doctors or is it more of a trade generic kind of a business where you reach out to chemists?
Vinay Lohariwala
Yeah. What our universe Medicare is 100 trade genius business.
Unidentified Participant
Okay. Okay. So thanks, thanks for the. For answering the questions and once again congratulations on a good result and best of luck for the future, sir.
Vinay Lohariwala
Yeah. Thank you. Thank you.
operator
Thank you. Ladies and gentlemen. If you wish to ask a question, please press star and 1. The next question comes from the line of Abdul Kadar Puranwala from ICICI Securities. Please go ahead.
Abdulkader Puranwala
Yeah. Hi sir. Thank you for the opportunity. Sir, first question is with regards to your base CDMO business. So including Jammu and but if you could provide us some color as to how your base business has grown despite the pricing pressure you just talked about.
Lokesh Bhasin
So. Hi Abdul. So if I talk about ICL standalone basis, basically this is the business which showcase our manufacturing capability business. So it has grown by around 26.5% year on year which constitutes of my entire manufacturing capabilities of but the. As well as Jammu.
Abdulkader Puranwala
Understood, got it. And secondly, you know when now the export business is surging on the branded generic side. I know any, any color you could provide on margins, you know with the incentives coming from Jammu and you know the traction what you’re seeing in exports, any you know, ballpark guidance you would like to provide for this year, next year. You know, how should we look at the EBITDA margin profile of the company?
Lokesh Bhasin
See Abdul, as we submitted in our earlier telecon also see we are looking at the Jammu ramp up as of now and there are too much moving parts on that. It’s a complex business consistent of multiple business areas, multiple legal entities. In a long run, when we are anticipating that Jammu will stabilize, we are surely anticipating a certain upward movement on our margins. But we should be able to provide a more clear picture in our coming quarters.
Abdulkader Puranwala
Understood. And one final one if I may. So Jammu, I know it’s quite clear about the revenue what you guys are targeting. But you know, any, any color you can provide on you know how soon this facility can test cash positive. That is it can generate, you know, free cash flows, you know by when can we expect that to happen?
Lokesh Bhasin
So if I talk at a pat level, if I talk at a PAT level as Vanessa earlier said that our internal target is to reach at a hundred crore quarterly revenue. So this is a level where somewhere around 105 crore of quarterly revenue we should be able to break even at pet level. And from there on it should be cash positive at pet level. Not only cash but at pad neutral also.
Abdulkader Puranwala
Got it sir. Thank you.
Lokesh Bhasin
Thank you.
operator
Thank you. Ladies and gentlemen. If you wish to ask a question please press star and 1. We take the next question from the line of Kitesh from Lucky investments. Please go ahead.
Pritesh Chheda
So sir, this Jammu unit, when does it operationally break even? At what level of sales and which quarter?
Lokesh Bhasin
We are anticipating the break even level at that level at a hundred crore quarterly revenue and operational level is somewhere around 60, 65 crores of revenue.
Pritesh Chheda
And when do you think you’ll achieve 60, 65 and 100 crores? If there’s. These are the two milestones.
Vinay Lohariwala
So this year we are at a 60 crore level and I think the EBITDA loss of hardly 1 1, 1 crore. So it’s just if at a EBITDA level if you see we are already on even the second quarter of the operation. We are already on the breakeven.
Pritesh Chheda
Okay, so quarter four last year and quarter one this year. These are the first two quarters.
Vinay Lohariwala
Yes. It’s only two. Yeah. So because of this incentive help us to achieve that breakeven level. And we hopeful that by the end of the year we will be the pet positive as well.
Pritesh Chheda
And this incentive, it’s booked and it is received or it is just booked in your PNL as of now.
Lokesh Bhasin
So it is accounted on an accrual basis subject to our eligibility and submission to GST 40s.
Pritesh Chheda
Okay.
Lokesh Bhasin
And there may be lag of one or two quarter from cash flow on this.
Pritesh Chheda
And at this 60, 65 crore what is the utilization of the asset?
Lokesh Bhasin
Hardly 10, hardly 5%. Hardly 5%. Sir. I think less than 5%.
Pritesh Chheda
It cannot be 5%. Right. Can make 5000 crore revenue.
Vinay Lohariwala
No, no, no, no, no. So that can make like a top revenue. Could be like 1500, 2000 crore.
Pritesh Chheda
So then it is 65 into 4 divided by 2000 crores. About 10,000, 15% utilization. Okay. Okay, done sir. Thank you.
operator
Thank you. Ladies and gentlemen, we take that as the last question and conclude the question and answer session. I now hand the conference over to the management for their closing comments.
Vinay Lohariwala
Thank you once again for continued support and confidence in Inova captech. We remain committed to deliver sustained growth and creating long term value for all our stakeholders. Thank you once again.
operator
Thank you on behalf of Innova Cap Tab limited that concludes this conference. Thank you for joining us. And you may now disconnect your lines.