Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Jagsonpal Pharmaceuticals Ltd (NSE: JAGSNPHARM) Q4 2026 Earnings Call dated Apr. 28, 2026
Corporate Participants:
Soumya Chhajed — Investor Relations
Manish Gupta — Managing Director
Nirav Vora — Chief Financial Officer
Analysts:
Anupam Agarwal — Analyst
Unidentified Participant
Unidentified Participant
Sajal Kapoor — Analyst
Aditya Chheda — Analyst
Unidentified Participant
Unidentified Participant
Presentation:
Operator
Ladies and Gentlemen, good day and welcome to Jagsonpal Pharmaceuticals Limited Q4 and FY26 earning conference call hosted by Goindia Advisor. As a reminder, all participant line will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation. Conclude should you need assistance during the conference call please signal an operator by pressing Star then zero on your touchdown phone. Please note that this conference is being recorded. I now hand the conference over to Ms.
Soumya Chahjar. Thank you and over to you Ma’. Am.
Soumya Chhajed — Investor Relations
Good evening everyone and welcome to Q4 and FY26 earnings conference call of Jacksonville Pharmaceuticals Limited. We have on call with us Mr. Manish Gupta, Managing Director, Mr. Amrit Medical Chief Operating Officer and Mr. Neera Vora, Chief Financial Officer. We must remind you that the discussion on today’s call may include certain forward looking statements and must be therefore viewed in conjunction with the risk pertaining to the business. I now request the management to take us through the same and provide some more insight on the quarter and year gone by.
Post that we’ll open the floor to Q and A. Thank you and over to you sir.
Manish Gupta — Managing Director
Thank you Soumya and good afternoon everyone. Thanks for joining the call and we appreciate your continued interest and support for JacksonPA. I’m pleased to report that JetsOnPal is back on growth in Q4 after 2/4 of Nettish performance. This is on the back of sharpened focus on execution especially in the area of Mr. Productivity and Retention at the industry level. While the IPM grew between 7 to 8% during Q4 and most of the year, we have outperformed meaningfully at both the quarter and MAT levels giving us the necessary confidence of growth acceleration going forward for FY26.
While the revenue growth has been modest at around 7%, our net profit has grown at 19% before exceptional items. The performance is underpinned by financial discipline and focused execution which is also reflected in our strong cash position which was upwards of 190 crores at the end of the year or on the 31st of March. While we continue to scout for strategic inorganic initiatives. The board of the Jetson Fund is also guided by capital allocation philosophy that remains focused on disciplined value creation and efficient cash deployment.
Alongside the 40 crore buyback announced on 12th March at Rupees 250 per share with no promoter participation. And the Board has also recommended a 200% dividend for the year which includes a one time special dividend of 75%. While the shareholder approval for the buyback was received on 27th April. The enhanced dividend is subject to the shareholder approval in the forthcoming agm. These steps of the Board are fully reflective of the focus on improving the return on capital employed and or return on equity as also their confidence in acceleration of business in FY27 and beyond, driving strong continued cash flow generation for the business.
Looking ahead, our strategic priorities remain consistent which is about driving organic growth through enhanced Mr. Productivity, sharper brand focus and disciplined cost management. While we continue to evaluate value creative inorganic opportunities with a stronger execution framework, we are confident of sustaining and accelerating the growth momentum while delivering consistent long term value to our stakeholders. I would now request Amrit, our Chief Operating Officer to take you through the operational performance.
Thank you Manish and good evening everyone. And as Manish rightly mentioned that the last two quarters have centered around strengthening the execution engine of the business and we are now beginning to see the impact of these efforts translating into stronger operational performance. While the broader industry which is IPM has grown at around 7 to 8 percentage, Jackson Pad has started to outperform meaningfully on an NAT basis which is annual sales, the company has delivered 12.2% growth as per Wamara, outperforming the market by 3.6 percentage and this momentum accelerated further in the last quarter which is quarter four where the growth reached 14.2% against the industry growth of 10.5%.
This performance was driven by disciplined execution, stronger internal processes and our focused operating efforts supported by an asset light business model that allows us to remain agile, efficient and consistently cash generated. On the other side, if you look at the branded portfolio, jaitsunpal continues to maintain a very strong and balanced portfolio. Our top 10 brands currently constitute approximately 58 to 60% of our total sales depending on the quarter, providing both the scale and stability for the business.
Importantly, nine out of these top 10 brands are ranked within the top five in their respective categories, reflecting the competitiveness, prescription strength and sustainability of our core portfolio. Growth has been led by strong traction across the key therapies in particularly gynecology and dermatology, both of which witness prescription momentum and remain important growth anchors for the organization. These segments have shown strong doctor engagement and improved prescription conversion supported by focused execution and sharper brand investments.
While a few mature brands in select therapy saw some moderation during the year, the strength in these high growth segments has more than offset the same, resulting in a healthy overall growth trajectory. A major focus area for us during the year has been strengthening the front end capabilities. We have invested in a very structured Mr. Training program and Manager development program aimed at improving the doctor Coverage call quality, territory, productivity and consistency of our engagement.
Alongside this we have worked on improving the field force stability and retention which has been an important driver for stronger execution over the last quarter. At the same time we have sharpened our brand investment strategy by increasing focus on high potential brands and ensuring better allocation of our resources and towards therapies and brand building where we see stronger growth, visibility as well as sustainable long term opportunities. These efforts are now clearly reflecting in our improved field productivity, stronger doctor Engagement and better execution on the ground which is visible in relatively better quarter four performance.
And with these building blocks now firmly in place we are well positioned to deliver more consistent scalable and market outperforming growth in the coming quarters. Thank you so much and now I request nirav our CFO to take you through the financial highlights.
Nirav Vora — Chief Financial Officer
Thanks Amrut and thank you everyone for joining us. So from a financial perspective,
Manish Gupta — Managing Director
Q4FY26 reflects a strong improvement in operating performance with revenue growing by 10% year on year to rupees 64 crore, some supported by healthy demand, momentum across key therapies and stronger execution. This translated into EBITDA growth of 9% year on year to close to 11 crores while maintaining stable margins at close to 16% reflecting disciplined cost management and operating resilience. Profitability saw a sharper uptick with PAT rising to 31% year on year to close to rupees 9 crores and with a PAT margin expanding to about 14% for the full year, FY26 revenue grew by about 7% to rupees 287 crores and operating EBITDA stood at close to rupees 61 crores with a margin of approximately 21%.
At the profitability level our profits from operations grew by 19% year on year to close to rupees 45 crores reflecting a margin of about 16%. The only exceptional item during the year was the impact of New Labour Code which was taken in Q3 and overall the business continues to show meaningful improvement in core quality and profitability. We also continue to maintain a strong balance sheet with a cash position of over 190 crores. Working capital remains well managed with net working capital cycle equal to 11 days, reflecting our continued focus on financial discipline and prudent capital allocation.
On the buyback front, we have received shareholders approval for the proposed rupees 40 crore buyback of up to 16 lakhs equity shares at a price of rupees 250 per share. As mentioned earlier, the promoters shall not be participating in the same. This move is expected to have significant impact on our return ratios with ROI increasing from about 16% to 18% while ROC shall improve from approximately 22% to closer to 26%. This reinforces the Board’s focus on efficient capital deployment and long term value creation for public shareholders.
The record date is May 0426. For the same, the detailed buyback guidelines and process will continue as per regulatory requirements. Alongside this, the Board has also recommended a 200% dividend including a one time special dividend of 75%. This will result in a total payout of Rupees 4 per share and an overall cash distribution of approximately Rupees 26 crores. Between buyback and dividend. The company shall be returning over rupees 66 crores to the shareholders. This reflects our confidence in both that in the strength of our business model and in the capabilities of generating free cash.
We stay confident of sustaining and accelerating growth while maintaining disciplined capital returns. That concludes our update. We shall now be happy to take your questions. Thank you.
Questions and Answers:
Operator
Thank you so much sir. Ladies and gentlemen, we’ll now begin with the question and answer session. Anyone who wishes to ask a question may press Star and one on their Touchton telephone. If you wish to remove yourself from the question queue, you may press Star and two participants are request to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assemble. Our first question comes from the line of Dipesh from Manya Finance. Please go ahead.
Nirav Vora
Hi, am I audible?
Operator
Yes sir, you are
Nirav Vora
Now. Q4 marks a very strong recovery after two relatively muted quarters. How much of this improvement is structural versus seasonal?
Manish Gupta
Thank you so much. If you look at our portfolio, we hardly have products which are seasonal in nature. And therefore what we see today is purely driven by operational strengthening as well as some of the steps that we have taken in terms of our brand building and Mr. Productivity improvement. So all the growth which is there seems to be completely strategic and structurally made in favor of yields. And I don’t see any of the season impact there.
Nirav Vora
What was key triggers behind such a sharp improvement in Q4 execution? And how can the company, I mean going forward, will the company perform the same way?
Manish Gupta
If you remember Dipesh, I’m not sure you were there in the last phone call, but we had given you this guidance that we will be delivering a double digit growth and that’s what exactly we have delivered. So we have done the walk to the top. But second part is we have also given you a guidance that we will be looking at beating the market growth. And that is what our objective has been. And obviously we are taking expiration to beat it by 1.5x which is 1.5 times more than the Indian Pharma market growth.
And in that direction we have taken several steps which I have enumerated in my talk which includes improving our field force productivity by way of improving their training, their skills, upskilling them and more importantly trying to engage more customers so that our prescription value per doctor increases and thereby resulting in lesser of cost for acquisition of newer business. And therefore I always call it as a profitable growth for the organization.
Nirav Vora
Right. So what is the biggest execution risk in achieving the targets which you have given?
Manish Gupta
Execution risk may be macro on a micro level. At an organization level I do not see because we have very well established, very old legacy brands which continue to drive its market share in the current therapies and molecule bucket. However, there are certain new product opportunities obviously which we are continuously looking at which are into our strength areas which we intend to build. Maybe one execution risk may be that we may go over aspirational on certain products but yet we want to give them a full try with our heart and soul so that we are able to achieve them.
But we are not sure how those molecules will eventually emerge as a macro market. So I only see a macro happening for the organization at our level, internally within the organization, we are super confident of delivering operational excellence and growth which is backed by profits.
Nirav Vora
And what gives the management confidence of further acceleration beyond the current IPM performance outperformance?
Manish Gupta
One is obviously it is too early for us to say and as I said earlier on, this is our first quarter wherein we had committed your double digit growth. That’s what we have aimed for and we tried to deliver. And I’m hopeful that the steps that we are taking towards rationalizing some of our resources and also reallocating those resources for more productive use, I think that will be one of the three key drivers. Besides of course improving our own capability and skills of the team so that they perform better in the market and are able to compete meaningfully in clinic for the doctor.
Nirav Vora
Okay, and how should investors think about FY27 growth versus the stated target of 1.5x IPM growth?
Manish Gupta
We continue to maintain that guidance.
Nirav Vora
Okay, and just my last question, what is the reason of, you know, distributing so much of cash to shareholders? I mean, do we, don’t we see any growth opportunity Beyond I mean, in our company or any investment as such.
Manish Gupta
Dipesh, I think this is a not an easy question for the board simply because how much cash is adequate cash is not an answer. That is, I mean this depends from person to person. Personally, as a company, the board is of the view that keeping too much cash is also not productive, especially in the scenario of falling yields and also in a scenario wherein now we have access to bank finance. So if you look at our own balance sheet, you can easily believe that we can raise upwards of 200 crores as fresh debt in the company.
We have close to 190 crores of cash and given our cash flows, we are very hopeful of recouping whatever we are paying out within the next 12 months. So technically we do have wherewithal to undertake an acquisition of up to 400 crores with our own balance sheet. I think that is more than sufficient in the view of the board. And I think they took a very pragmatic decision of not keeping too much cash in the company beyond what is potentially needed.
Nirav Vora
Sir, just, I mean just to counter that my. Sorry
Operator
To interrupt you sir, but you may rejoin the queue for more questions.
Nirav Vora
It’s just a counter question because I mean it’s related to the previous answer. That’s right,
Manish Gupta
Yeah,
Nirav Vora
Yeah. So basically your total roe, what you’re doing on your cash as well as on your assets is 7017 to 18%. Now if you’re making that good in roe, why don’t you deploy your cash into the business and give a better roe? I mean the investors would be happy with dividend of course, but point is, if you’re giving a good roe on the money which we are keeping in your company, I think that is good enough for us. Why distribute the entire cash and you know, take debt and have that interest outgo. I mean that was just my thought process.
Manish Gupta
Otherwise I’ll just address this. Basically. Pharmaceutical industry for growth does not is not capital intensive, it is brand intensive and brand requires execution, excellence at a field force level, which is what we are focused on. We do not require any capital beyond what we are spending in terms of growing our business. So any use of real cash that we have is only for inorganic strategy and not otherwise. So you are right that if we can generate 70 and 80% from our core business, but that is only working capital, that is by pumping in more working capital, I cannot grow the business.
We can only grow faster than the market through better execution in the marketplace which we are already focusing on. So earthquake capital is not required for the organic growth, it’s only for inorganic growth. And keeping that cash at 7% in the bank pre tax I think defeats the objective.
Nirav Vora
Great, Great. Sir, thank you so much. Thank you.
Operator
Thank you. Our next question comes from the line of Anupam Agarwal from Lucky Investments. Please go ahead.
Nirav Vora
Yeah, thank you so much for taking my question and congratulations on good numbers, sir. My first question is that if you can break down your full year growth of 12.2% as per pharmacy between the four therapy segments, that will be really helpful.
Manish Gupta
Therapy wise, we are overweight on three therapies which is dynamic ortho and dermatology. Currently offhand I won’t be able to give you exact breakup between these three therapies.
Nirav Vora
Yeah, but I’ll give you, I mean while we don’t have latest numbers, but roughly our top of our business is
Manish Gupta
Guidance gynecology. 25 odd percent would be Ortho
Anupam Agarwal
And another 10 to 15%
Manish Gupta
Will be Derma. 10%.
Nirav Vora
No, my question was more so on the growth, which business therapy is kind of driving that growth? Largely
Manish Gupta
The. Largely driven by number one gang and number two is Dharma.
Nirav Vora
Okay, so you’ve talked about Mr. Productivity. Just a question on that. So what is the Mr. Count today and what was the productivity, let’s say last same quarter last year and what was it in the fourth quarter?
Manish Gupta
So number of Mr. Continues to be same. There is no new addition of Mr. In the last quarter which is under reference now. And productivity, the growth that you’re looking at is pure play know productivity improvement.
Nirav Vora
Understood, sir. In your presentation there are a couple of lines mentioned about, you know, you launching or ideating one to two products every quarter. How are we placed on that? What is the kind of new product launches that we’ve done in the fourth quarter? What was it in the last full year and what are we planning for the next next year?
Manish Gupta
So we had a total of six new product launches and three SKUs. I mean the brand extensions. We intend to have similar number approximately 9 to 10 in this current year as well. In which half of it will be more of rejuvenating the older brand, the legacy brand that we have. So some brand extension in the same brands with the brand extension. And there will be close to around five or six opportunities which will be in the new product therapy,
Nirav Vora
New product therapies or new products within the existing therapy,
Manish Gupta
Our strength area which is gynecologic, ortho and dharma. Understood.
Nirav Vora
Great. Sir. I just wanted your breakup of the growth therapy wise. So maybe I’ll Take that offline. That’s it for my sir. Thank you so much.
Operator
Thank you.
Unidentified Participant
Our
Operator
Next question comes from the line of Gautami Agarwal from Perpetuity Venture. Please go ahead.
Unidentified Participant
Hello sir.
Unidentified Participant
Am I audible? Yes.
Unidentified Participant
So my first question is on the gross margin side. As we can see, QOQ this year the gross margins have declined and on the other hand the other expenses have increased. QoQ and yoyo. So is there a particular factor or is it fair to assume that these are the stable numbers going ahead?
Manish Gupta
You are referring to any specific number of quarter four or.
Unidentified Participant
Quarter four, sir?
Manish Gupta
No. Are you drifting to quarter four or for the full year? Because full year gross margins are largely in line. There has been minor change but it is more than 64.2% versus 60. Yeah. 20, 30 bits which is just a product mix issue, nothing more than that.
Unidentified Participant
All right, sir. And what about the other expenses part?
Manish Gupta
Other expenses just. Then other expenses also if you look at
Nirav Vora
That has marginally increased. I mean 30 days. That could be attributable
Manish Gupta
To largely. I mean largely a bit of timing issue. Let me just give you example. Like when do you conduct your cycle meeting, your annual cycle meeting, budget meeting. Last year might have happened in April and this year it might have happened in March. So on the size of our balance sheet, 1 crore of a PNL. 1 crore difference here and there makes a difference in the percentage. But structurally there is no increase in our cost structure beyond the normal inflation.
Unidentified Participant
Okay. Okay sir, got it. Fair. My next question is on the guidance side. So previously our guidance had been of 12 to 14% on the top line and 100 to 150 basis points on the EBITDA margin level where I see that this year has been a one off year. And since our growth has been exceptionally well compared to the IPM data. So is it fair to assume that we will be sticking to the earlier guidance going forward?
Manish Gupta
We had given the guidance, ma’, am, if you remember last quarter also we clearly mentioned and we repeatedly said the cost of repeating. We are certainly targeting a 1.5x of the pharma industry growth. Currently the pharma industry is trending anywhere between 6.7percent to 8 to 9%. So this is the window in which it is operating. And If I calculate 1.5x of that it translates to anywhere between 12% to 15 percentage right now as the scenario moves forward. Because now you have some blood of launches into metabolic, anti obesity and things like that.
Obviously the market is also expected. I am repeating the word and underlining this word expect it to perform better. We are seeing even if we are not present in anti obesity right now, our portfolio is strong enough to still beat the market and deliver a 1.5x growth.
Unidentified Participant
Okay sir, got it. Thank you sir. That’s it from my side.
Manish Gupta
Thank
Operator
You. Our next question come from the line of Sejal Kapoor from Anti fragile thinking. Please go ahead.
Sajal Kapoor
Yeah, thank you for the opportunity. Hi team, few questions from my side. And if we track the next two quarters, what quantitative thresholds, I mean for example Mr. Productivity growth or volume growth would kind of validate that this turnaround that we have reported in Q4 is on track versus slipping back to the industry level growth. Any few, maybe two quantitative thresholds that we can actively monitor.
Manish Gupta
Hi Sejal, very good afternoon to you. This is Amrut Medebar. Yeah, so last reported numbers of pharma, that is what we look at or IQV also almost similar numbers for the industry. I’ll just break it down for you. So volume has been almost flat for the pharma industry on a moving annual total basis. So yearly the volumes have been almost flat. It ranges anywhere between 0.5% to 1.2 1.3% on a month. On month basis the new product contribution is upward of 3 percentage. The price growth is roughly around 5 percentage plus and therefore the annualized growth is roughly in the range of 7 to 9% month on month.
Now if you look at the JPL which is Jaksonpal numbers and look at Pharmarec data only and try to mirror this. Our volume growth is reflected as 2 percentage there. Our new product is matching the industry growth which is 3% plus. Our price growth is little shade higher which Is at around 6.5 to 7 percentage on the price side. So overall our reflection is showing as 12 percentage. So this is where the industry and Jackson Pal is as far as the external reflections are considered internally we are certainly trying to keep these numbers also Sajal and I think I had indicated to you on the same questions question last quarter as well that we foresee as you ask specifically for the next two quarters I see same numbers getting even better.
Sajal Kapoor
No, definitely. We certainly hope for that Amrit and thank you for answering that. Next question is, I mean we have. So our top 10 brands today contribute about 58 60% of revenue. Our top 10 and these have driven the recent recovery obviously. So over the next two three quarters what is specific indicators, I mean such as growth contribution from the next 10 brands so to speak, a new product revenue share or reduction in top brand Dependency should be tracked to assess whether growth is broad based rather than concentrated.
I mean, at what point would you consider the portfolio sufficiently diversified to sustain the aspirational 1.5x IPM growth without relying sort of disproportionately on few large brands?
Manish Gupta
Yes. So Sajal, this is industry wise. I think a very common question which comes across. See most of the industry and especially the old organization will have this legacy impact. So you will have some brands which are very old but constituting a very large chunk of your top line. And hence it becomes very, very important for you to trend your line. When you grow in your growth trajectory. That line has to be kind of managed very well that you are not threatening your core brand. The volumes remain or rather grow.
So that’s your core engine, right? That’s going to funnel your growth or fund your growth, future growth, while new products will obviously accelerate that growth. So our focus will continue to be on our power brands, our core brands which are kind of two or three brands each of the business units or vertical therapy vertical that we operate with. That’s where our majority of the resources will be deployed. At the same time we are trying to build a portfolio which is future, future growth proof, meaning some of the products where we see next 10 years, 20 years growth.
These are the products in which we have identified which are complementing our strength and which possibly will have much better chance of success. Sajal. So as I rightly, I think put the numbers to you, we are certainly looking at upward of 3% growth coming purely from these strong new product launches as well. While ensuring that our volume and price growth matches or betters the pharma industry.
Sajal Kapoor
And that’s helpful. Amrit. And lastly we still of the view that the trade generics is not a competition as far as our business is concerned. And this lack of volume which is an industry wide phenomenon, it may or may not be partially if not fully linked to the trade generics growth. But that has nothing to do with any challenges that we see as on today
Manish Gupta
Currently none. Because this is not a new phenomenon. This is going on for almost a decade and last five years. Possibly it got little accelerated post Covid scenario when the generics had taken a front seat because of a lot of generosity camera coming up as well as generic businesses of the large pharma companies are also trying to take away the market share. But none of these numbers are currently validated. There is no custom report which is available saying that generics is eating into the branded formulation.
So I am very sure the way we are operating today. We are able to drive volume growth, we are able to make new product success and we are also able to take premiumized pricing. So that also talks about our brand strength in clinic with the doctor’s mind.
Sajal Kapoor
Sure, sure. No, that’s helpful. That’s helpful. Thank you so much. Thank you.
Operator
Thank you. Our next question comes from the line of Amnesh Parman from Vikarya. Please go ahead.
Unidentified Participant
Yeah, hi, good afternoon. Thanks for taking my question. I just had a question about the potential, you know, impact of whatever is happening in the Middle East. If you can just outline whatever impact the business is facing and also if you can just touch upon, I guess, that all your manufacturing is outsourced. So are you having any kind of feedback from your CMO partners in terms of constraint on raw material supplies, be it API or solvents or packaging materials?
Manish Gupta
Yeah. So I respond to it in two parts. Clearly from a demand perspective, there is no impact of whatever is happening on the Middle East. So the demand remains secular as far as the industry is concerned. Having said that, clearly there are certain pressures on the cost front, especially packaging material.
Aditya Chheda
Clearly
Manish Gupta
All the vendors are seeing cost increases and they obviously, while they are carrying certain inventories that they will be looking to pass on some of the cost increases. Finally, I think all of us will find an equilibrium. Having said that, I believe pharmaceutical industry overall will be lesser impacted given that the gross margins in this industry are better than most other industries. So with 65 to 80% gross margins that most of the branded companies, I think our ability to take some of these cost increases are far superior.
And we are also allowed a 10% price increase. So some of it will get consumed within that price increase. All in all, yes, there will be cost impact. Will it have any impact on the or any significant impact on the profitability of the company? I don’t believe so.
Unidentified Participant
Okay, thanks Manish. Just follow up on that. Hypothetically speaking, let’s say the API cost increases BY let’s say 50% for the CMO manufacturers is. I just wanted to have a sense on how the contracts are structured. Is all of that cost increase passed on to the marketing company or it’s like a share of the pain kind of a system where, you know, some pain is shared by the CMO guys and some only a part of the pain is passed on to the marketing company. How is it structured usually in the contract.
Manish Gupta
Thanks for this question. I’m sure you would know that I also have a little bit of CMO background. I. So typically the cost doesn’t get as is transferred to a buyer or a client. So depending on the structure of the agreement, it is typically absorbed over a period, time of of time and in a staggered fashion as per your purchase orders. Because even your purchase orders are not there for every 15 days or every week. Your purchase orders are also staggered over a quarter. And therefore the absorption is also real time as per the prices prevailing at that particular point of time when the purchase order is getting released.
And while we have an agreement which is longer term in nature, the agreement also allows you time to absorb those increments over quarters. So it’s not one quarter impact at all.
Unidentified Participant
No, no, that’s fine. I understand. My question was that over time is it completely passed on to the marketing company which then passes on to the market by price increases or some is absorbed by the.
Manish Gupta
I mean even the price increases are normally not seen being permanent. They will also fall when the scale also happens for those molecules. And the supply chains typically kind of smoothens out. So today what we are looking at supply chain constraints is less related to movement of the products, more related to the insurance cost. So typically those will also drop down just to further add on. Say finally, nobody will do business at a loss.
Nirav Vora
Right?
Manish Gupta
So we have to find a middle ground between the CMO and us and also a middle ground between us and our customers. Okay. So everyone absorbs what they can, everyone will pass on what they can and the new equilibrium gets established. Okay, but having said that, as I was mentioning, the overall cost in our team of things is not that significant as it is for many other industries.
Unidentified Participant
Yeah. Understood. Last question from my side. You mentioned three of your dominant therapies. Gynac, ortho and dermatologist. If you see in the last three, four months, IPM growth is kind of picked at about close to, let’s say 10, 11%. If you take a blended growth for these three strong therapies of yours. Are these therapies on a blended basis going higher than IPM or lower than ipm?
Manish Gupta
No. They are in line with the IPM growth currently.
Unidentified Participant
Okay, so when you say you are going to grow at 1.5x of IPM, that also practically means that you are growing at 1.5x of your covered market, correct? To assume that.
Manish Gupta
Yes. Yes.
Unidentified Participant
Okay. Okay. Thank you. I’ll get back.
Operator
Thank you. Next question comes from the line of Madhurathi from Counter Cyclical Investment. Please go ahead.
Anupam Agarwal
So Mr. Gupta, I’m trying to understand that what percentage of our revenue is coming from E pharmacies. That is the online Netmed and one mg. Etc. And what are the terms of trades in terms of credit period working capital as well as margins are they higher or lower versus the traditional our sales channel.
Manish Gupta
I’m sorry I didn’t get your name. Please can you repeat.
Anupam Agarwal
My name is Madhurati.
Manish Gupta
Yeah Mr. Ratty, thank you for this question. Currently this the number is almost insignificant for us to have any mention of this in terms of supplies to these online pharmacies. However the structure for every organization differs. For these pharmacy chains some of the supplies do happen from the authorized stock listing each and every warehouse of theirs as per the location geographical location. And second is you also get into the rate contracts which are annual in nature for some of the products which are high prescription and high volumes.
So currently we don’t have per se a very high volume or value contribution from these E pharmacies.
Anupam Agarwal
Understood. And also when last did we take a price hike across our product portfolio? And what was the quantum of the price hike and what is the average salary hike that we are looking at on account of our Mr. This year?
Manish Gupta
Madhu sir, in terms of exact percentage I won’t be able to share this because we are yet to close our appraisal cycles and KPI completions for the last fy. We are in that process and while we conclude this it will possibly be this quarter. Second part of your question was that when the price increases will happen so price price increases will be SKU based because as per 12 month complete 12 month period gets over then only one SKU is allowed for a price increase and that’s when we actually take as well.
It all depends on how much inventory you have with you and how much is the need for the extra inventory to create a purchase order or to create trigger a purchase order.
Unidentified Participant
Right. And so there’s a final question sir. If I look at our scale versus the size of the market it’s much larger in terms of I think SKU offerings as well. So are we. So our growth estimates of 1.5 times the market are we being conservative in that in either new product addition or growing in these three segments Gynaec, Ortho and Dermatology. So either in new product addition are we being conservative because one point because our scale is not what is the market at? Scale is not that high.
Manish Gupta
I am not able to hear you clearly but I can possibly sense what you wanted to ask. I’ll repeat my question
Aditya Chheda
Again.
Manish Gupta
I just answered that our market as we said is. I think Manishi has already elaborated those numbers to you one is the earlier question which you asked about the price increase. Our 92% of the portfolio is outside the LLM which is price control. So almost you can say 90% of my portfolio, I can go up to a price increase of 9.9%. Second part that you ask the question is whether our participated market or covered market is big enough to drive our growth upward of 1.5x. Is my question understood correctly?
Unidentified Participant
Yes sir. And also on the new product addition because versus the target market, product addition can be much faster. So. Yeah,
Manish Gupta
Yeah, correct. So we are trying to rejuvenate that. As I mentioned in my opening remarks as well, we are trying to rejuvenate our portfolio. But obviously we are working with a specialty segment where prescription pickup doesn’t happen from day one. New product establishment is a very very hard work for prescriptions to start flowing in from each and every pin code of the country which will take possibly a year plus for us to do that. And that’s what we are working on with new product addition. As I mentioned, as per Pharmarex we are matching or doing better than the pharma industry in terms of a new product performance.
So we are already at 3% plus in terms of our growth contribution from the new products and we are trying to further accelerate that.
Unidentified Participant
Got it. So that was for mine. Thank you so much and all the best.
Manish Gupta
Thank you.
Operator
Thank you. Next question comes from the line of Aditya from Ingrid Asset Management. Please go ahead.
Aditya Chheda
Hi, good afternoon. Can you break your Q4, FY26 and FY26 growth in price, volume and new products?
Manish Gupta
Yeah. I’ll give you the breakup for Q4 which you are asking. So for us volume growth was almost in line with the market. I’ll give you the for the pharmac numbers how they are reflected for. Unfortunately I don’t have the quarter right now. I have the year. So can I give you for the year right now?
Unidentified Participant
Yes, that is fine.
Manish Gupta
So I have given it earlier I repeated. So for the Indian pharma market the volume growth has been approximately 1%, little less than 1%. New products has been little higher than 3%. It was around 3.1 and price is little less than 5. So it was around 4.8. So sum total of this is around 8.5. If you round it off it will become 9%. Okay. Now for Jackson Pals the numbers reported are volume growth is 2 percentage. New products is matching which is 3.2 percentage. And our price growth is in the range of 6 to 7 percentage sum total of this comes to 12%.
Operator
Thank you. Our next question comes from the line of Pradhan from maximum capital. Please go ahead.
Unidentified Participant
I hope I’m audible sorry miss this like like our new product pipeline. So which therapeutics you said you know those molecules will be
Manish Gupta
Your molecules you will possibly come to know in a month’s time but we are looking at some good breakthrough molecules and hopefully we will be in the second wave of launch for this first in India product. So we are preparing ourselves for gynecology one therapy second obviously we are looking at ortho and Derma so you will come to know about this. We will make an announcement at the fortune time mostly either may end or June 1st be
Unidentified Participant
On the 2nd on the Mr. Efficiency that you are working on. So so these new products I assume will be aligned and you know that would help us increase the efficiency of our field ports because if I understanding is correct, I mean there were some churning issues and you know you were trying to tackle that and improve the efficiency from our field forces. So I assume all these new products will be aligned and that would be helpful to increase or manage the productivity.
Manish Gupta
Yes, absolutely. So as I said there is one upskilling workshop which has happened. There is a very good product and therapy training which was given to all the miss we are also looking at the talent improvement within the organization organization so that all the promotions also happen internally as a policy for the organization while we try to blend with the external hiring in case we are not able to find anybody internally for a new position. The third thing that we are working on is whether the geography in which we are operating we are able to get more productivity.
So we are not adding any geographies, we are not adding any new Mr. But we are trying to trying to see whether organically from the same geography we are able to extract more and thereby conserving our cost as well.
Unidentified Participant
Got it. And that would have any implications on our incremental cost margins or working capital. All these initiatives,
Manish Gupta
Any implications on our operating cost and or working capital. As you would have noticed we are already working on a very lean working capital 11 days and this has been consistent for two years now. So we believe we are best in class as far as working capital management is concerned
Nirav Vora
And we intend to stay that way.
Unidentified Participant
Got it sir. The final one on the capital return policy like I see that you know the strategy seems to be like we want to return back you know the dividend, buyer dividend or share buyback and so that our net cash kind of remains below 200cr. So is that understanding correct? I mean we will continue to do that. I mean we’re generating healthy cash flow so we don’t want to kind of, you know, keep surplus cash over like 200cr. So I mean
Manish Gupta
I don’t think we have a number in mind. But yes, we believe with the robustness of our cash flows, which continues, we have adequate cash currently and even what we are paying out through both buyback and or enhanced dividend will fully get recouped within the year itself. So I mean you can arrive at the number. But yes, we, we believe that the current cash position of the company is more than sufficient to fulfill any inorganic initiatives that we may need to undertake.
Unidentified Participant
Got it sir. Thank you sir. And all the best.
Manish Gupta
Yeah, thanks.
Operator
Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star n1 on their touchdown telephone. Our next question comes from the line of Anupam Agarwal from Lucky Investment Managers. Please go ahead.
Nirav Vora
Yeah, hi, thank you for the follow up. Sir, just on the top 10 brands, so if you can call out what the growth has been for those top 10 brands on a, on a basket level and what has been the growth for the tail end brand which is the 42% of the business.
Aditya Chheda
Can you repeat the question? The line wasn’t too good. Yeah.
Nirav Vora
I’m asking the top 10 brands which contribute 58% to your revenue, what was growth in those 10 brands and what was the growth in the balance 42% of the business?
Manish Gupta
It’s almost in line. So top 10 brands are obviously constituting much more healthier bottom line for us. So our growth on those brands has been in line with rest of the portfolio. It’s hardly 1% change
Anupam Agarwal
But I think we’ll arrive at the right number because it is. We have not added the numbers and seen it. We’ll come back but it will be very, very different.
Nirav Vora
Understood. And sir, do you have different divisions for each of these therapies in terms of Mr. Or are they interested? Inter.
Manish Gupta
Your voice is not very clear at all. Can you please repeat this or maybe little bit away from the mic. I think it’s getting smudged.
Nirav Vora
Yeah. Am I audible now, sir?
Manish Gupta
Yes, you’re audible, sir.
Nirav Vora
Yeah. I was asking in terms of your Mr. Productivity between the three brands, between the three therapy segments, do you saw the M1 in terms of division or separate independent division by itself?
Manish Gupta
I’m really
Operator
Sorry but if you’re wearing a Bluetooth or anything, can you please remove the Bluetooth because your voice is echoing and we can’t hear you properly.
Nirav Vora
Can I hear you now?
Operator
No sir.
Manish Gupta
No. I repeat the question. Just tell me yes or no. You asked me whether the three therapies are separate divisions and whether we are going equally. Something like that,
Nirav Vora
Yes.
Manish Gupta
So all three businesses are independent. We are trying to have a character on those businesses. One is a clear cut you know dining business which has absolutely no confusion. So entire portfolio is pure play Gynec shaking business is what we are trying to build up is around orthopaedics which doesn’t have all pure play orthopedic brands. Currently third business is again purely a dharma focused business. So dharma focused organic focus is absolutely there in place while the third vehicle which is still to be built or work in progress you can say is the which will happen as the quarter progresses over next couple of quarters and all the three engines will fire equally well.
I am confident about it for contributing towards the profitability growth for the organization.
Nirav Vora
Got
Manish Gupta
It. So the last question if I may. Can you quantify in absolute figure what is the MI productivity for each of these three business segments? I won’t be able to give you exact numbers there for each of these businesses in terms of productivity. However I can promise you one thing that the growth will be entirely driven with the productivity improvement and we don’t intend to increase the Mr. Numbers currently or managers number currently. So manpower remaining same our growth will be still higher than the ip.
Nirav Vora
Can you rank them in what is highest in terms of Mr. Productivity between one dynamic
Manish Gupta
Will be higher. Number one also will be number two and number three will be done.
Nirav Vora
Thank you so much. That’s it from my side.
Manish Gupta
Thank you so much. Thank
Nirav Vora
You.
Operator
Thank you. Next question comes from the line of Aditya from Ingrid Asset Management. Please go ahead.
Aditya Chheda
Hi, just one clarification. The number you mentioned for Jackson Pal of 12% versus the reported number of 7% this is the lead lag in the data reported in pharma. That’s the only difference there, right?
Manish Gupta
Correct. Correct. You are right.
Aditya Chheda
Okay, these are the reported
Manish Gupta
Numbers in the Pharmac external audit for the pharma industry as well as Justin Park.
Aditya Chheda
Okay, thanks.
Operator
Thank you. As a no further question from the participant I would like to hand the conference over to the management for the closing remarks. Thank you. And over to you team.
Manish Gupta
Thank you all participants for your valuable questions and engagement. We appreciate your interest in Daximpa. Should you have any further queries or any requirement of additional information, please do not hesitate to contact our IR team at Go India Horizon. We remain committed to engaging with you, all of you, fostering transparent communication as we continue advancing our objectives of creating value for our shareholders. Thank you once again for your participation and wishing you a very good evening.
Thank you.
Operator
Thank you. Ladies and gentlemen, on behalf of COINDIA Advisor, that concludes this conference. Thank you for joining us. And you may now