Jagsonpal Pharmaceuticals Ltd (NSE: JAGSNPHARM) Q3 2026 Earnings Call dated Jan. 22, 2026
Corporate Participants:
Manish Gupta — Managing Director
Amrut Medhekar — Chief Operating Officer
Nirav Vora — Chief Financial Officer
Analysts:
Soumya Chhajed — Analyst
Deepesh J Sancheti — Analyst
Neelam Punjabi — Analyst
Aditya Chheda — Analyst
Sajal Kapoor — Analyst
Pulavarthi Saikiran — Analyst
Pushkar — Analyst
Kriya Shah — Analyst
Dheeresh — Analyst
Presentation:
operator
Good day and welcome to the Q3 and 9 months FY26 earnings conference call for Jaksanpal Pharmaceuticals Limited. As a reminder, all participant lines will be in the listenerly mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Soumya Chayed from Goindia Advisors. Thank you and over to you Ma’. Am.
Soumya Chhajed — Analyst
Good evening everyone and welcome to Q3 and 9 months FY26 earnings con call of Jacksonpal Pharmaceuticals Limited. We have on call with us Mr. Manish Gupta, Managing Director Amrut Medekar, Chief Operating Officer and Nirav Vora, Chief Financial Officer. We must remind you that discussion on today’s call may include certain forward looking statements and must be therefore viewed in conjunction with the risks pertaining to the business. I now request the management to take us through the same and provide some more insight on the quarter gone by. Post that we’ll open the floor to Q and A.
Thank you. And over to you sir.
Manish Gupta — Managing Director
Yes thank you Soumya and good evening everyone. Thank you for joining us today for this earnings call of Jetsempal Pharmaceuticals. We appreciate your interest in JPL and your continued support as we navigate through this pivotal phase in our journey. Our journey has always been about combining medical science with buffers driven growth and that commitment continues to define us. As you know, the last quarter saw strengthening of our leadership team with the appointment of Amrit as CEO and Nirav’s cfo. Both have settled well and are already making valuable contribution in driving the next phase of Jetson Master.
Coming to the performance during the quarter it was at best flattish. We acknowledge that this outcome has been below our own expectation as well as relative to the broader Indian pharmaceutical market. While we face the headwind of our RPM which is the market that we are present in Korea growing at less than half the IPM growth, we also lost a bit as we reviewed and refreshed select strategies under the new leadership with an overall intent to improve the long term growth engine of the company. The benefits of these should start reflecting from the current quarter itself.
While the performance in the last two quarters reflected temporary pause in our momentum due to certain transitional factors such as GST which got changed in Q2 and our own improvement initiatives in Q3 on a nine month basis or a year to date basis we had a resilient performance with 6% growth in top line driving a 13% bottom line improvement. As I mentioned earlier, we are confident of a growth acceleration to double digits from Q4 itself. At an industry level, the IPM grew at about 8%, largely driven by price growth of 5 to 5.5%. Even as the volume growth state muted, our RPM has grown relatively slower at 3 to 3.5%, reflecting the inherent cyclicity that some segments go through from time to time.
Historically, such phases tend to rebound and we expect growth to normalize and improve in the coming quarters. Overall, the quality of business stays robust as is reflected in stock cash generation of over 15 crores during the quarter. Now I request Amrut, our Chief Operating Officer, to take us through the performance and initiatives for the period.
Amrut Medhekar — Chief Operating Officer
Thank you Manish and good afternoon everyone. I’m honored to join Jaitshan Pal which has built a strong reputation in India Pharma and I’m excited to lead our next phase of growth. Our mission remains clear to deliver high quality medicine at affordable price and innovate with a patient centric approach. We’ll continue to strengthen our presence in the branded generics while expanding into new therapeutic areas where patient needs are underserved. I firmly believe that our greatest strength lies in our people. Together we’ll foster a culture of collaboration, accountability and growth. My immediate priority is to empower our teams, reduce attrition and strengthen the bond between the company and our team to ensure every colleague feels valued and motivated to contribute to our shared success.
Strategically, we’ll sharpen our focus on growth drivers including orthopedics, women’s health and select therapies while investing in digital transformation and supply chain excellence. Our Growth Our goal is sustainable growth and balancing strong financial performance with long term market leadership. I will briefly touch upon our operating performance and execution priorities. Over the past few months we undertook a deliberate recalibration of our field operations to enhance execution excellence and better align our resources with the four therapeutic priorities. This included a strategic repositioning of brand teams to sharpen, focus on high potential brands and optimize the field force deployment.
While these changes led to some near term disruption including a phase of elevated attrition, they were essentially to strengthen our commercial effectiveness. I am pleased to share that this transition is now largely complete and we are seeing clear signs of improved team stability as well as operational momentum. Going forward, our focus remains on improving field productivity, strengthening our brand investments where we see the highest returns and driving more consistent execution across the markets. With the operational challenges largely addressed, we are confident of delivering improved performance in the Coming quarters. I will now request Nirav, our CFO to take you through the financial performance for the quarter and the nine month period in more detail.
Thank you.
Nirav Vora — Chief Financial Officer
Thank you, Amur. Hello everyone. Happy to welcome you all to this call and thanks for continued support. Our third quarter performance remained largely flattish with revenue at 73 crores. EBITDA for the quarter stood at 16.7 crore translating into an EBITDA margin of 22.7%. For the period, PAT grew by 10% year on year to 12.5 crores with PET margins improving by 180bps to 17.1% reflecting the company’s operational resilience and underlying brand strength. For nine months period performance remains healthy with revenue growing 6% year on year 2223 crores while EBITA increased by 5% year on year to 50.3 crores with margin at 22.6% and for the period stood at 35.9 crores reflecting a 12.5% year on year growth with margin at 16.1%.
Our free cash balance now stand at Rupees 176 crores reflecting an increase of Rupees 15.2 crores in the quarter. Again reflective of our strong operational discipline. Coming to new labor code Based on initial estimation we have provided for an additional past service cost of rupees 2.1 crore as an exceptional item during the quarter. That concludes the update from our side. We shall now open the room for questions. Thank you.
operator
Yes sir, should we open the floor for Q and A?
Manish Gupta — Managing Director
Yes please.
Questions and Answers:
operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star n1 on their touch note telephone. If you wish to withdraw yourself from the question queue you may press N2. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question comes from the line of Dipesh and Chiti with many finance. Please go ahead. Hi.
Deepesh J Sancheti
Am I audible?
operator
Yes. Yes.
Deepesh J Sancheti
How do you think on an overall basis on how pharma companies will be taking this new labor code and how has it affected Jackson Pal and going for. I mean going forward.
Manish Gupta
I don’t think we can comment on how other companies will be taking it.
Deepesh J Sancheti
Because overall in the para business.
Manish Gupta
I. Don’T think it will be very different from how we have handled it. Clearly there are guidelines around is effective from 21 November but the state rules are notifications are yet to happen. There will be some restructuring of Salaries involved at all levels. But having said that there will be some one time hit as we have taken similar things will be probably applicable for most of the company. But I mean that’s my general feeling. I don’t want to speak on behalf of other companies. I personally welcome this move. It kind of puts up a common framework across all the setups and is a good move in the form of balancing the labor interest and the industry interest.
Deepesh J Sancheti
Okay, so there will be any, will there be any salesforce rationalizations will be considered?
Manish Gupta
Not at all. Not at all.
Amrut Medhekar
Like no, no, there won’t be any. This is Amru. There won’t be any rationalization on the field or at ho.
Deepesh J Sancheti
Okay. Now my second question is regarding the growth. I mean firstly, is the management really happy with the 6% growth and going forward? Where do you see this and how has the. And secondly, how have the brands actually performed in this growth system?
Amrut Medhekar
It’s a mixed bag of performance. If you. Obviously, as Manish has said in his opening remarks, the growth is not even as per our own expectations. So obviously there’s a lot of scope for improvement for us to do and that’s what we are on the job to do that. However, the growth, if you’re asking in terms of breakup of the growth, then some of the branches certainly outperformed the market while some of the brands are lagging. So that’s where we are working and hopefully we’ll be able to beat the market growth as soon as possible.
Deepesh J Sancheti
So will that affect our sales mix going forward? As in are we planning to correlate this data and try to get a better sales mix going forward for these brands which are performing well? Is that going to happen or. We are going to explore the market as it is.
Amrut Medhekar
Obviously sales mix is primarily what the organization wants and where the need lies in the market. So that gap is obviously where we are trying to fit in. And if that means that it will change our gross margins. No, it won’t.
Deepesh J Sancheti
No, I’m not talking about the gross margins. I’m talking about sales growth. I’m sorry, sales growth. You know, are we going to go with, you know, the, the brands which are doing better sales?
Amrut Medhekar
Yes, of course. So we’ll obviously, you know, bet on the winning horses.
Deepesh J Sancheti
So that along with that what will be the sales, I mean what will be the growth drivers for the company going forward for the next one to two years?
Amrut Medhekar
So the mix will largely remain as to how the India Pharma has been behaving. So 50% of the growth we are Expecting with the price increase as well as some new product and new SK introductions and remaining will be the volume growth.
Deepesh J Sancheti
Thank you so much.
Manish Gupta
Thank you Dipesh.
operator
Thank you. The next question comes from the line of Neelam Punjabi with perpetuati. Please go ahead.
Neelam Punjabi
Thanks for the opportunity. My first question is on the expense of the new on account of the new labor code. So is this 2.1 crores one off expense or going forward would this impact the employee costs that we have on a recurring basis?
Amrut Medhekar
Yeah, Neelam, there are two elements to this. Since the impact has started from 21st of November and yet the notifications from the respective state governments is yet to happen, we expect or what we at least read in the media that the reward from the state governments is only expected in the coming month which is February. So we expect that the notification should happen early March or end of March and therefore the applicability will start from the 1st of April. Essentially however we have provided for this code currently one time of 2.1 crores and going forward there is a very little impact in terms of the overall cost increase for the employee remuneration.
Manish Gupta
If I may just add, basically if you see the code there are two elements which impact. One is gratuity. The way gratuity is calculated and the way leave engagement are calculated. So this 2.1 crore because gratuity is relating to past many years of service and leave encachement again is linked to how much based on company policy, how many leaves you can carry forward based on years of service. Therefore this is a cumulative impact of the past and hence it is shown as one time and exceptional as per the institute guidelines. And as Amrit has clarified ongoingly, there is very limited impact.
Neelam Punjabi
Understood. So this was very helpful. My second question is on, on overall growth of the company. So in the past we have highlighted that Jackson Paul’s portfolio should have a steady 12 to 14% kind of organic growth going forward. So while you know we understand that in the near term this has been, we’ve recalibrated and rejigged our portfolio. So going forward are we sticking to this long term 3 to 4 year outlook of 12 to 14% organic growth?
Amrut Medhekar
Yes, Neelam. So what we are looking at is if there are not any macro changes or external changes happening, we expect the growth to be into double digits.
Neelam Punjabi
Got it. Okay. Thank you. And another question is on Yash Pharma. So if you could just comment on how has the acquisition played out? How has the brands of Yash Pharma played out since our Acquisition. Are we happy with the progress?
Amrut Medhekar
We are essentially looking at the past two years since the acquisition has happened. The team has really worked very hard and today it is contributing more than the expected lines towards the growth. And also we are looking at future further expansion of the portfolio into the specialty mix.
Neelam Punjabi
Got it. Thank you. That’s it for my end.
Manish Gupta
Thanks.
operator
Thank you. Ladies and gentlemen, if you wish to ask a question to the management, you may press star N1. The next question comes from the line of Aditya Cheddar with Incred Asset Management. Please go ahead.
Aditya Chheda
Good evening. Can you please break your growth within price, volume and new product launch for Q3 and 9 month both. And if you have any rough mix that you can share between chronic subchronic and acute value portfolio, that would be.
Amrut Medhekar
So Aditya, thanks for your question. However, off the hand I don’t have this breakup exactly. But it is in the similar lines as the industry has which is more than 50% of the growth is coming with the price and the balance is coming from the volume and the new products. That’s where we are. So we are no different from the industry growth currently. We expect that we will be able to increase our volume growth going forward as well as contribution from the new products. That’s part one. Can you repeat the second part of your question please?
Aditya Chheda
The mix of chronic, sub chronic and within the portfolio.
Amrut Medhekar
See, we are not into very long chronic therapy. So typically nowadays the industry is having three segments. So you have chronic, semicronic and acute. So we have a typical mix of roughly around 35 to 40. Percentage of acute and remaining is into semicronic got.
Aditya Chheda
And we have reported a miles 1.8% growth for 3. This implies.
Manish Gupta
Your line is suddenly turned bad. Can you repeat the question?
Aditya Chheda
Yeah. Since we have reported a minus 1% 1 odd percent growth for Q3 this should be all a function of lower volume growth led by the temporary reject that the organization is going through. If you can advise more details about the nature of this rig and what exactly was the exercises about it would be helpful to better appreciate the degree numbers.
Amrut Medhekar
Aditya, I’ll put it into two lenses. One is not a rigid I will call it. But it is more of a resource reallocation for better optimization of the resources. Number two in terms of growth elements since it’s minus one you can understand it’s a miniscule degrowth. We are kind of flattish. This has also been corroborated with the fact that there was some adjustment post GST rationalization which is a great move by the government. And third is we were also looking at in terms of strategically whether we can reposition some of our brands so that we are able to drive better growth in the coming quarters.
Aditya Chheda
Got it. That was helpful.
Manish Gupta
Thank you Azit.
operator
Thank you. The next question comes from the line of Sajal Kapoor with anti fragile thinking. Please go ahead.
Sajal Kapoor
Yeah, thank you for taking my question. Good afternoon team. Just few questions from my side. First of all, hopefully that Q4 growth will be along the lines that we have been hoping and guiding for for some time now. Assuming that we mean 10% when we say double digit. So I’m taking the lower end of that range of double digit. In that 10% assumption, what is our assumed industry growth rate?
Amrut Medhekar
The assumption is currently the industry is. Going at roughly around 8 percentage and I expect Sajal the similar kind of trend to continue. The industry is expected to be around 7.5 to 8.5. We are expecting upward of 10 percentage in the current quarter. So it’s not at the lower end. We hope to be at better with the numbers, Sajid.
Sajal Kapoor
Sure, sure. And do we expect that number to be much more sustainable beyond the Q4?
Amrut Medhekar
100%. Even better. Our. Our idea suggest at least what I am aiming in the short term is 50% more than the industry growth.
Sajal Kapoor
Okay, right. So fiscal 27 should be a very good year given our low base currently. Right?
Amrut Medhekar
Yes.
Sajal Kapoor
Okay. Understood, understood. Thank you for that. And what is our current confidence, Amrit and Manish, in terms of, you know, this much needed improvement in the per capita or the field force productivity? Because we been grappling with this for a while now.
Amrut Medhekar
I understand the pain of this question and I think that is the same pain point which we have. But as we grow organically, we are also looking at some product launches which are into high growth territory with a better yield per patient. And hopefully that should happen somewhere at the end of H1 in the coming financial year. And that should add to the volume and value increase, thereby increasing our per capita.
Sajal Kapoor
Sure, sure. And Amrit, on this cash sitting on the books, it’s well documented. It keeps increasing every quarter which is. Which is good. 1415 quarter cash getting added to the balance sheet on a quarterly basis is a fantastic thing for any company, especially given our size, a small size, but it’s also diluting the roe, right? So what is the capital allocation think going ahead? Are we seriously looking at something?
Manish Gupta
Yes, we are always seriously looking at something. But the capital market is not supportive from a M and a perspective. Obviously everyone gets much better Valuation in the capital market than what in strategic buyers can effort. So clearly M and D is a very strong intent at our end. But a disciplined M and A which is accretive for our shareholders and not dilutive. So that’s very, very important for us. Market has not been supportive in terms of cost or price of acquisition. We did one Yash Pharma and have successfully demonstrated our ability to create value out of it.
We continue to be on a lookout but we cannot put in a time frame to it. Having said that, if we are unable to use our cash efficiently we would rather return it to the shareholders in the right format.
Sajal Kapoor
Yes, sure. And finally a quick bookkeeping question for Nirav perhaps depreciation has moved up significantly since March of 2024. The gross block has also significantly increased. Now please can you refresh my memory in terms of what’s driving this depreciation in a business that is largely asset light with all the manufacturing being outsourced. Thank you.
Nirav Vora
Yes, that’s correct. Depreciation has largely moved up because of. If you would have seen our balance sheet. There is an acquisition which we had done last year, Yashwarma. And the assets are largely comprised of intangibles, trademarks and all. And because of that those are getting depreciated over the period. And hence the depreciation line is gone.
Sajal Kapoor
Right. So. So that’s purely because of Yeshwarma and the intangibles, not the manufacturing assets.
Nirav Vora
No, no. So we do not have very large base of tangible assets. It’s very small. The largest, largest portion lies in the tangible intangible assets.
Manish Gupta
Tangible assets are only laptops.
Sajal Kapoor
Okay. Yeah, fair enough, Manish. And then so this in, in a way should only help our operating cash flow, right? It’s a non cash expense.
Manish Gupta
Absolutely.
Sajal Kapoor
Yeah. Okay. Okay. Thank you. Thank you.
Manish Gupta
Not only helps that but also helps our tax planning in a way.
Sajal Kapoor
Yes, yes, of course, Manisha. Now thank you for all the responses. Fingers crossed. We look forward to a much positive Q4. Thank you.
Manish Gupta
Yes, thank you Sajal for your positive pressure.
Sajal Kapoor
Thank you.
Manish Gupta
Yeah.
operator
The next question comes from the line of Pulawati Sai Kiran with Pulawati Advisors. Please go ahead. Yeah, hi.
Pulavarthi Saikiran
Thanks for taking my question. Sir, if you can just elaborate. You always mentioned that.
operator
I’m sorry to interrupt. Sir, could you please use your handset?
Pulavarthi Saikiran
Yes, I am using my handset.
operator
Okay. Can you please come? Yeah, yeah. Please go ahead. Hello.
Pulavarthi Saikiran
Yeah, so I’m just wondering sir, if you always mention that Dash Pharma is a successful acquisition. Just curious. From your perspective, how you define this success in terms of acquisition? What are the parameters based on which you evaluate on the hindsight basis this is a successful acquisition.
Manish Gupta
So let me respond my way and then Amrit can add from a business perspective but looking at an investment lens, A the business is among the faster growing business within our portfolio. B the margins which were about half of Jackson Pal Pharma at the time of acquisition have been already aligned with our overall corporate margin. C the business practices or the cash flow generation out of that business is also fully aligned with our own business. And finally of course the ROI for the price that we invested, we could certainly have more than double digit returns on our investments within the first year.
So these were the three or four criteria we used to justify this acquisition from a brand or any perspective if we wish to. So one more strategic angle I would give it probably added two therapeutic areas because JPL had very limited RPM and that helped us expand our RPM and provide us additional growth engines.
Pulavarthi Saikiran
My second question is that in terms of one of the earlier participants question you mentioned in terms of the capital allocation, 1 is an M and D or you also mentioned that if you can’t find anything you will prefer or rather you will find a way to return to the shareholders. Do you foresee any other way of putting the cash to work to expand the existing business organically? I do understand that you follow the asset light model, but do you foresee a scenario where you would like to put some cash to work in terms of expanding the distribution or maybe adding few more therapeutic areas? Is that something which you would like to consider?
Manish Gupta
Absolutely, that is part of the agenda. But clearly our kind of business does not require that kind of cash. So while we will put some capital to risk in terms of additional growth engines within our portfolio, but the kind of cash generation we have, unless it is used for M and A and M and A can take multiple shapes. It can be a brand acquisition, business acquisition and or a company acquisition. But come what way? I don’t think we can burn cash disproportionately given the way we run. Amrit, if you would like to add.
Amrut Medhekar
Yeah, I mean both the options are on the table so we’ll obviously deploy deploy capital in the most meaningful way which is EBITDA accretive eventually. And also we are seriously looking at some of the good acquisition candidates. Currently the assets are very highly priced so we are looking at something which will bring value to the shareholders.
Pulavarthi Saikiran
Thanks. Thank you very much. Really appreciate it. Thank you very much.
operator
Thank you Full of thank you participants. If you wish to ask a question, you may press star at 1. The next question comes from the line of Pushkar with Millie Capital. Please go ahead.
Pushkar
Hi sir. Am I audible?
Manish Gupta
Yes.
operator
Yeah. So sir in.
Pushkar
I am tracking the company for the like recently for the first time probably so. So I just wanted to know in this like generics market, what second order. Indicators like for example doctor feedback or. Prescription trends do you monitor to detect. Early signs of market share erosion?
Amrut Medhekar
I have not understood your question completely, but if you’re asking me what are the leading or lagging indicators for the. Market, I would say that
Pushkar
market share. Erosion, if there is some brand which is there are early signs of market share erosion in that specific brand, what are the leading indicators that we monitor?
Amrut Medhekar
One would be of course what we. Get in terms of the market research reports which are kind of custom built for the organization many times. And then there are subscription models which are also available, which we do and which will be early indicators for us. However, the report only comes post hoc, so that means it is a stockist out data which gets released maybe a week after the month ends. But that gives a guiding idea in terms of where the market is heading.
Pushkar
Right, right. So and then if there is a market share loss in some of the brands, then there are like corrective actions or maybe you know, incentives to sales scores, etc.
Amrut Medhekar
Okay.
Pushkar
Okay, thanks a lot.
operator
Thank you. Ladies and gentlemen, if you wish to ask a question, you may press star N1. The next question comes from the line of Kriya Shah and Indonesian investor. Please go ahead.
Kriya Shah
And how do you plan to further increase.
Manish Gupta
You’ll have to repeat the question. We couldn’t hear it at all.
Kriya Shah
Sorry. What is the current Mr. Productivity and how do you plan to further increase the doctor for brand and brand for doctor?
Amrut Medhekar
I will issue two answers to the two pronged question. In terms of productivity, we are little less than our peer group which we are trying to build up. And once we reach there actually our growth will be automatically driven towards higher double digits which we are trying to do. Second piece is obviously this growth has to come from two ways. Either we increase our prescriber base or we increase P by D which is prescription for a doctor, whether it is in terms of absolute number of prescription increasing for one individual brand or number of brands increasing per doctor.
So we are working on both the pyramids and hope to see that the picture turns deep green soon enough.
Kriya Shah
Okay, thank you. Thank you so much.
Manish Gupta
Thank you.
operator
Thank you. The next question is a follow up question. It’s from the line of Aditya Cheda with in cred Asset management. Please go ahead.
Aditya Chheda
Hi. So apart from the internal calibration, would you attribute any other reasons for growth lower than your earlier expectations?
Amrut Medhekar
I think the industry itself is, you know, kind of flattish. Other than the new products and the price growth, it has been muted. So if you look at the recent past of maybe three or four quarters you will find that the volume is hardly into a very, very low single digit either 1%, 1 1/2% or maximum 2 percentage. Even the recent report is alluding to the same. So I think there are two kind of shifts which are happening which I making an assumption here. One is there is a good amount of government spending and therefore a lot of government purchases are happening which is mostly of the brands which are eating into the private practice market.
Second is the generics are also growing equally as the branded pharma. And also there is a theory that combination brands prescription from the doctors are increasing and thereby per prescription number of brands are getting reduced. So doctors are prescribing more of combination brands. And this I am alluding to you with the data point. So combination brands are increasing in India vis a vis a single molecule prescription. So therefore the volume growth looks muted.
Aditya Chheda
Got it sir, that was helpful,
operator
Thank you. A reminder to all participants that you may press star and one to ask a question. The next question comes from the line of diresh with white oak. Please go ahead.
Dheeresh
Yeah, hi, I’m Anish. Sorry I was not there for the entire call so you might have. I’m sure you answered this but what exactly is the reason for the lower growth in the last two quarters?
Manish Gupta
I think Amrut would like, I mean we have two consecutive quarters of slow growth. One was certainly impacted by GST as I covered in my opening remarks and the second one again or the current one has been lower than expectations, our own worst expectations partly driven by again internal factors because we have, I mean with Amraj joining us he has initiated certain critical actions which are going to be which I mean kind of impacted growth for short term but with the long term intent of course correcting in terms of driving long term growth. But anything you’d like to add?
Amrut Medhekar
Yeah, I think, I mean Manish has largely covered those two points so we are looking at more of strategic alignment towards our strength and there is also kind of resource reallocation of you know, the, the product, the brand priority as well as the people priority.
Dheeresh
So just if you can just maybe you know just simplify IT services. Have you Let go of some long tail brands. And GST also, we’re not seeing it in at least not all companies are reported yet. But the companies that are reported this quarter, we’re seeing good reported growth. So GST is our distribution very different from the distribution of other large pharma companies because we are not seeing, at least for the company that has reported the, you know, slowdown being attributed to gst. Both the two things, if you can catch.
Amrut Medhekar
I have not seen those reports so far. The. The two reports which have come out possibly I’ll read much in detail, but frankly speaking, there had been an inventory correction in the market at the time of GST implementation and thereby the primary sales have certainly got impacted. However, for us as well as the industry, I don’t think much of secondary got impacted or the tertiary demand got impacted. So there had been this temporary pause, I will say in terms of growth momentum, which was there, but as Manish had said in the opening remark that this is already behind for the industry and things are normalized from the last quarter and hopefully from this quarter you’ll see a good growth happening for the business.
Dheeresh
And what do you mean when we say guys say restructuring? So there are certain tail brands that you have let go of or what exactly has. Can you elaborate on what you’ve done.
Amrut Medhekar
Towards the health of the organization? You would always like to bet on the winning horses and make your strength more stronger. So obviously there has been a rationalization of some of the SKUs which were eating into the deployment of the capital because versus our sales. If we compare the batch size, we were sitting with more of the cash blocked on the books rather than getting it sold and liquidated from the market. So we have rationalized some of the very, very small SKUs. However, the focus is not largely on the large banks to be built.
Dheeresh
Okay, so what percentage of the revenue have you let go of?
Amrut Medhekar
In terms of revenue? I won’t be having off the cuff number, but it will be a small number, maybe around 1 1/2 to 2 percentage of the value of the top line.
Dheeresh
All right. Okay. Thank you so much. Thank you.
Amrut Medhekar
Thank you.
Manish Gupta
Thanks D.
operator
Thank you. Participants, if you wish to ask a question, you may press star and one.
Manish Gupta
If there are no further questions, can we conclude then?
operator
Yes, sir. There are no further questions. You can go ahead with your closing comments.
Manish Gupta
Thank you all participants for your valuable questions and engagement today. We appreciate your interest in Jetson Park. Should you have any further queries or any requirement of additional information, please do not hesitate to contact our IR team at Goindia Advisors. We remain committed to engaging with all of you, fostering transparent communication as we continue advancing our objectives of creating value for our stakeholders. Thank you once again for your participation and wishing you a good evening today. Thank you.
operator
Thank you on behalf of Go India Advisors. That concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you.