Marksans Pharma Limited (NSE: MARKSANS) Q1 2026 Earnings Call dated Aug. 13, 2025
Corporate Participants:
Unidentified Speaker
Mark Saldanha — Managing Director and CEO
Jitendra Sharma — Group Chief Financial Officer
Analysts:
Unidentified Participant
Nitin Agarwal — Analyst
Ahmed Madha — Analyst
Sudarshan Padmanabhan — Analyst
Aditya Pal — Analyst
Maitri Sheth — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Marksons Pharma Q1FY26 earnings conference call hosted by DAM Capital Advisors Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touch tone phone. Please note this conference has been recorded. I now hand the conference over to Mr. Nitin Agarwal from Dam Capital Advisors Ltd. Thank you. And over to you sir.
Nitin Agarwal — Analyst
Hi. Thank you. Good afternoon everyone and a very warm welcome to Marksons Pharma’s Q1 F26 earnings call hosted by DAM Capital Advisors Limited. On the call today we have representing Markson’s Pharma Management Mr. Mark Saldana, Founder, Chairman and Managing Director and Mr. Jitendra Sharma, Chief Financial Officer. I’ll hand over the call to the management team to make the opening comments and we’ll open the floor for questions. Please go ahead Mark.
Mark Saldanha — Managing Director and CEO
Thank you Nitin. Welcome everyone and thank you for joining us for our Q1 FY26 earning conference call. We sincerely appreciate your interest and continued support for the company. Reflecting on Q1 FY26, the quarter was seasonally soft driven primarily by seasonal contraction in demand across our key markets in US and uk. In UK specifically we experienced high single digit price erosion in a few products. We responded proactively and launched four high margin liquid products in the uk. These launches are a part of our conscious effort to strengthen our portfolio and insulate us better for pricing pressure.
We already are witnessing early signs of demand recovery in Q2. We believe the momentum will strengthen as the year progresses. Our profitability was impacted by a few non recurring factors including integration related expenses, a one time provision in the emerging market division and foreign exchange volatility. These are transitional in nature and do not detract anything from the fundamental trajectory of our business. Strategically we accelerated shipments to the US ahead of the anticipated tariff implications helping us de risk certain potential disruptions and secure supply continuity for our customers. This front loading impact impacted the working capital cycle which stood at 159 days for the quarter.
We are pleased to report that newly facility in Goa is structurally near ready. We are now focused on enhancing operational efficiencies and scaling capacity to support multi dosage manufacturing forms of tablet capsules, liquid creams, ointments and more. On regulatory front, we have received an EIR from the US FDA for the inspection conducted at our subsidiary Time Capital Rotaries. We also continue to make good progress on our product pipeline. During the quarter we have received three regulatory approvals from the US FDA and UK MHRA and successfully launched four high margin products in the uk. These are all in line with our strategy of building a more diversified and margin accretive portfolio.
Our strategy focus remains consistent to emerge as a trusted reliable partner in global consumer healthcare space. This is driven this is being driven through our strategic five pillars of OTC expansion, strengthening our product pipeline capacity augmentation, strategic front end acquisition and delivering sustainable and responsible growth. Looking ahead, we may remain steadfast in our commitment to deliver a superior long term value to all our stakeholders. Driven by strong operational execution, a robust product pipeline and enhanced capacity offered by a new facility in Goa, we are confident in our ability to navigate any challenges that may arise in the coming quarters to discipline execution and strategic agility.
With this, I’d like to turn it over to Chitendra for an update on the financials.
Jitendra Sharma — Group Chief Financial Officer
Thank you sir. In Q1 of FY26 our operating revenue stayed at rupees 620 crores, an increase of 5% year on year compared to rupees 590.6 crores. In the same quarter last year revenue from the US and North America market stood at rupees 327.6 crores, an increase of 30.6%. On a year on year basis driven mainly by growth from new product launches in digestive pain management segments. UK and EU formulation recorded revenue of 203.8 crores. Australia and New Zealand market recorded revenue of rupees 57 crores. The rest of the world revenue grew to rupees 31.6 crores.
Gross profit was at rupees 358.2 crores up 8.9% year on year, gross margin expanded by 209 basis points from 55.7% to 57.8%. In Q1 of FY26, gross margin improved due to liquidation of high cost inventories and benefits from softening input costs. We recorded EBITDA of rupees 100.1 crore. In Q1 of FY26 the EBITDA margin for the quarter stood at 16.1%, a decrease of 560 basis points from last year. This decline is due to an increase in employee expenses from the additional recruitment of the new facility along with one time expected credit loss provision for the emerging market division of Rupees 10.48 crores.
Additionally, softer demand during the Quarter resulted in lower than expected operating leverage. Profit after tax was at Rs. 58.2 crores, a decrease of 34.7% year on year. The decline in net profit was due to EBITDA impact and a mark to market forex. Loss of rupees 6.2 crore. EPS for the quarter was rupees 1.3 in Q1FY26 the cash from operation came in at rupees 48.7 crores. The capex during the period was rupees 37.8 crores. We spent rupees 12.1 crore in R&D in Q1 which amounts to 2% of the consolidated revenue. We continue to remain debt free and the cash balance stood at rupees 711 crores as as of 30th June 2025.
With this I would like to open the floor for question and answers. Thank you very much.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press Star and. Two participants are requested use a handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Ahmed Madha with Unifi Capital. Please go ahead.
Ahmed Madha
Yeah, thanks for the opportunity. My first question is on the UK business. Can you explain a little better in detail in terms of what led to 20% degrowth year on year apart from the points you mentioned? If you will explain it in little elaborate manner, it will help. That’s first question. Second question, in terms of gross margins improvement, can you explain little better what has led to the gross margin improvement and how do we see on an annual basis in terms of gross margin trajectory? Thirdly, on the TEWA facility, can you spell out the number of capacity utilization for Q1 compared to what it was in Q4? And how do you see the ramp up of capacities?
Mark Saldanha
Hi Ahmed, thank you. So, addressing your UK concerns. So basically unlike historic numbers of UK for the past two, three years, obviously the UK numbers were subdued on two counts. One was obviously seasonality. The first quarter season is normally always the weakest compared to rest of the years. Second is the price erosion that we have witnessed which has been a bit abnormal due to possibly various circumstances. One again having a cascading impact which spills down from the tariff situation in the US where uncertainty of tariff has basically slowed down demand in the US Thereby companies having a relook and refocus into different geographies for getting their revenues.
So we have witnessed heavy pricing erosions happening in the UK and basically pricing being thrown from probably the top 20 Indian companies out here and again to generate revenue and sales. Unlike the US, the UK our portfolio is 60% OTC and 40% RX and as you always know the RX is highly volatile in terms of demand and supply and presently there is oversupply and less demand which factors in from the global scenarios tempted from the tariff situations. So we are seeing price erosions happening which was abnormal, which basically UK has never seen to this level.
And this coupled with the seasonality factor being the summer season and being quite warm, obviously this had both coupled into the results that we are seeing today. That said and done, the second quarter will be better than the first quarter and the third quarter will be better than the second second quarter and so on. So we do plan to, basically we are optimistic on displaying better numbers in the coming quarters. But yeah, the first quarter was below expectation from UK and that is I think pretty much out of anyone’s control right now. The gross margin, sorry the Teva facility that we spoke of, the Teva facility we are now trending at very close to 500 crores.
I think in the Q1 we were trending more towards 400 crores. So there has been a better utilization from the Teva facility in the Q1 compared to the Q4. The gross margin increase is again the lowering of raw material cost. Initially we were holding higher material inventory cost which once depleted the lower cost came into play resulting in better gross margin onto the product portfolios that we saw.
Ahmed Madha
Got it. I have two follow up questions based on pricing pressure, are you suggesting high competition intensity in the UK business? And secondly, is it that we are sitting with some inventory in the UK warehouse in our UK subs.
Mark Saldanha
So inventory, we always sit with inventory. But from a competition point of view, no, I don’t see more competitors coming in but I do see a lot of desperate selling happening and this, I believe this could be, like I mentioned, a cascading effect where companies have decided to refocus their attention into different geographies due to the uncertainties of the global tariffs that are going on. And in that desperation, since US was not yielding that results, companies tended to offload or get revenue in other markets which have resulted in heavy price erosion happening out there.
Ahmed Madha
Got it. From that perspective for a US business I think we were mentioning around $200 million order book so how is that order book shaping up? And are there any change in timeline of execution of the order book which we had mentioned earlier?
Mark Saldanha
No. So our order book stands at 220 million. Out of that, nearly 45 to 50 million of that. Will the execution will start in the month of October. October, November, December, based on the artworks and the approvals and everything of that stuff. So obviously substantial amount of 40 to 50 million will not, you will not see a full year of revenue arising in the year. But that said and done, us will grow. Our contracts are in place. We do not have any pricing or volatility that you experience in UK. And that prima facie is because 90% of our business in US is OTC and 10% is RX.
So the volatility is very restricted, more towards RX than into OTC per se. So our contracts are intact. So far we’ve been fortunate that pharmaceutical is still exempted from the tariffs. So we do not see an impact. But uncertainty is definitely never a good thing because any new contracts, any more awards, all the buyers are waiting to see whether there will be a tariff implication or no. And you know, and, and since every now and then the timelines of tariffs are changing. Oh well, it’s going to be, it was supposed to be in July, it was supposed to be in 1st of August, 8th of August.
So everyone says wait, we wait and watch because the last thing they want is to award more contracts. And then after two months come back and you know, and us coming back and saying, well now the tariffs have come and now the price has changed and we have to reinvent the cycle and come up with a new contract. So that uncertainty, that visibility will come more when tariffs outplay itself. But it has dragged for the last three months because of no clarity of tariffs. While India has been slapped with a 50% tariff, we are fortunate that pharmaceutical has not been impacted on those tariffs.
But we are seeing the goods, we are seeing essential items, whether it’s groceries or other essential items cost going up. So consumers tend to basically be more reserved and careful in their spending because obviously they have to allocate resources to essentials more than to commodities or luxury. So even you have restaurants that are now facing downturn of people because people would need to spend more on groceries than on eating outside or. And the same way for medicinal and so buying 100 count, they probably settle for 24 count. So when you see something of the status out playing, although we may not be directly impacted indirectly, it has some, it has some impact, headline impact on the Demand situation in the market, you know, and it has been a cascading impact globally because then companies tend to look at different geographies to compensate their revenue drop.
Ahmed Madha
Yeah, yeah, thank you for the detailed explanation. My last question on the gross margin front again. So if I look at in the context of lower input cost and you have already kept inventory in US front loaded inventory, so is it fair to assume that we will have a similar Gross margin as Q1 for the balanced quarters or you would like to give a broad range?
Mark Saldanha
No, I think we will. Gross margins will continue to be healthy. We are optimizing our U.S. operations in terms of, you know, in our U.S. facility we import, we manufacture products and a lot of raw materials are imported from China which basically has tariffs right now. So we are paying 20% tariffs on raw materials. So basically US has become more expensive to manufacture in US than in India. And hence, you know, we are, we always explore to leverage low cost base whichever way it is potential. So we are working on the product mix to avoid that tariff implications on raw materials originating out of China.
That will take another couple of months. So definitely from the third quarter you will see better bottom lines also coming from the US Overall US if you compare year on year, obviously you can never compare the first quarter to the third or fourth quarter because those are the strongest peak seasons. So you can never. I’ve always said our business does not revolve around quarter, it revolves year on year basis. So because seasonal impacts do have, cannot be ignored on a quarter on quarter basis. But if you look at it on a year on year basis the US did grow by 30% over last year.
Ahmed Madha
Got it. Thank you so much.
Mark Saldanha
Thank you.
operator
Thank you. The next question comes from the line of Sudarshan Padvanaman with Ask NDP Ms. Please go ahead.
Sudarshan Padmanabhan
Yeah, thank you for taking my question. So just you know, going a little deeper on the price erosion in the U.S. you mentioned that 40% of the business is Rx and you know, if I see the press release, it talks about high single digit erosion. I mean the magnitude either on a Q on Q basis or even if I assume that there is, you know, seasonality the year on year, I’m basically seeing a 50 crore drop. But if I assume that you know, 50% of you know, the 40% sales or 45% sales in UK, the number seems to be very different.
Is there anything else that you know, is basically driving a little bit more drop than you know, probably one would have expected even assuming this five years?
Mark Saldanha
No. So I said there are Two counts. One is obviously the, when you look at it from the season point of view, there is a lull season in 40 and obviously 40% and then coupled with price erosion happening, price erosion happens on rx, it can happen dramatically where all of a sudden quite a few products would not be viable because of the price erosion. So your revenue would drop accordingly and so will your margins drop proportionately. So profitable products will become not so profitable because of price erosion. And revenue dropping means we decided not to probably sell half a dozen or more products because of the pricing pressures that are happening.
So it has to be looked overall. One is obviously the season was warmer and much more was worse than the previous year season. But this previous year season didn’t have pricing pressures and global phenomenons like tariffs. While out here uncertainties and tariffs led to a much bigger cascading impact in UK than than in the US or anywhere else.
Sudarshan Padmanabhan
Sure, sir. And the four products that we have launched now should basically, you know, kind of bridge the gap, you know, between what happened last year and probably, you know, what we saw in the first quarter as we progressively, you know, move forward.
Mark Saldanha
Yes.
Sudarshan Padmanabhan
I mean, if you can share more on what are these products, I mean, you know, how big they can be in terms of bridging the gap.
Mark Saldanha
They are quite decent. So technically, obviously bridging the gap. When you say bridging the gap, obviously a quarter is over, so the first quarter is over. But if you look at our second quarter, the numbers will be much better than the first quarter and the third will be better than the second quarter and the fourth will be between the second and the third quarter. That’s how the seasonality outplays in uk. But definitely I think the first quarter is a one off scenario. Not in comparison to quarter on quarter basis, but in comparison to historic numbers.
Definitely the quarter was subdued in uk, so but these new products will add more towards the bottom line than the top line. So you will see better profitability arising because these are more high value or higher value products and not high volume products per se. So you will see better profitability arising in the second quarter, much better arising in the third quarter compared to the first quarter and thereby, you know, thereby recovering to some extent.
Sudarshan Padmanabhan
And with respect to Australia and New Zealand, I mean that was primarily inventory and that should, you know, get back right from the second quarter, that should.
Mark Saldanha
Come back and see Australia is being reversed in the first quarter is winter out there while we have a summer. So if you look at their last quarter, a lot of their winter sales, most of the retailers, they lift stocks before the winter, the Q4, they lift up their stocks before the winter season starts. They don’t wait for the season to start and then do sales. So most of the retailers, if you look at the Q4 numbers higher than the Q1 number and that resulted in a bit of a lull where Q1 is concerned.
Sudarshan Padmanabhan
So one final question is when we look at the glass half full rather than glass half empty, the gross margin expansion is quite favorable for the raw material prices coming down, the mix is improving, etc. And this would kind of move forward. So I mean if I’m structurally looking at your margins, I mean where we were probably towards 20% to high teens and I mean just fast forwarding beyond these issues that you’re seeing and the moment we reach a certain scale as some of the product picks up, should our margin profile be much, much better than what we were say a year ago?
Mark Saldanha
See I would love to be optimistic but you know the global scenario is such where pricing pressure is there in certain markets. I mean UK itself constitutes 40 plus percent, 40 to 45% of our revenue. So we cannot ignore a market of that size having pricing pressure. So you know, from a margin standpoint of view. Ebitda. Yeah, EBITDA margin point of view. We will improve quarter on quarter, year on year. I think it will be more flattish somewhere around there.
Sudarshan Padmanabhan
Sure sir. Thanks a lot. I’ll join back.
operator
Thank you. A reminder to all participants to ask a question. You may press star and 1. The next question comes from the line of Aditya Pal with MSA Capital’s partner. Please go ahead.
Aditya Pal
Hi, am I audible?
Mark Saldanha
Yes you are.
Aditya Pal
Yeah. Thank you so much for the opportunity. So just wanted to double click on the previous. Your response to the previous participants question that our UK market is has a 6040 split in favor of OTC. So how are we. Because when we talk about US margins and pricing pressure not being there because of the favorable OTC mix, how are we going towards making the OTC mix higher in the UK market? Because as I believe that that would be, that would protect our margins and would help us at least not face pricing pressures from the competition.
Mark Saldanha
That is going to be difficult in UK because historically obviously UK has a, you know, in most of the countries we adopted different strategies to get, you know, to get a strong foothold and create our presence in the market. UK we had a very balanced portfolio of 50% OTC, 50% RX and we’ve got over 300 plus market authorizations both put together. US, obviously we have a smaller portfolio compared to UK, but US, we had to basically adopt a different strategy. We were very late entrance into the us, so we looked at the window of opportunity and created a niche and an identity for ourselves coming back to uk.
RX is a very important portfolio and we are increasing our product portfolio in RX to much more complex molecules and much more niche molecules, which are more value drivers than volume drivers. So if you look at our portfolio maybe one year down the line or one and a half year down the line, our portfolio will be much more robust and profitable because of the RX portfolio. That said and done, the inherent challenges of RX will always remain, but we have to just grow out of that. The historic products of RX will definitely be more volatile and the newer molecules will be much more profitable.
So I guess we have to just stay one step ahead of the curve. This phenomenon that we are witnessing, one has to understand is probably never seen before in the US when you talk of tariffs, the tariffs have been probably the worst since the Great Depression 1929. So technically the tariffs are even worse than the Great Depression of 1929. So no one could foresee that. So these are cascading impacts that are happening globally, but we would recover a lot of lost ground. Our business module is still intact, we are still focusing on new product approvals and launches and we will grow stronger and we will come out of this phase.
Aditya Pal
Got it. So a couple of quarters back, not even a couple of last year, 25Q1, we had said that the target for 26 is that we will reach a revenue of 3000 crores. And listening to your response to the previous participant that the margins would be low. So is it fair to say that we would, we would not touch 3000 crores, but be closer to 3000 crores this year because of the, because of the entire tire scenario uncertainty and because of that, the cascading problems in our. Existing, I think other existing market.
Mark Saldanha
I think you’ve summarized it well, we should be very close to 3000 crores or we’ll be shy away from 3000 crores. But again in the overall picture we will still grow over the last year. But yeah, from a 3000, we may be shy of that.
Aditya Pal
So a more strategic question, so how are we thinking in terms of diversifying our revenues to you? Because for the last couple of quarters we have been talking about acquisition, but not being able to find one. Doesn’t, does it not make sense just to start at least expanding in the European market organically?
Mark Saldanha
Organically it’s a very diversified market but we are looking at now launching organically in Germany. But it’s a medium to long term objective. When you start organically, inorganically helps a better stronghold and foothold faster and we can use it as a launching pad. But that would have been ideal case scenario. But that said and done, we are looking at an organic exploration into these markets. Focus is going on on various fronts. Not only Europe but also looking at India as a market. And let’s not ignore that we have to safeguard our position market share in the US too and we will do what is needed.
If tariffs do not play as per our expectation, we will have to do what is needed to ensure, ensure we basically, you know, continue our growth path and definitely, definitely try to retain market share that we have worked so hard for.
Aditya Pal
So just last question. So now obviously there are no tariffs on pharmaceutical products in the US but say in a case where on pharmaceutical products come, are there other safeguard measures in our contracts where at least some part of the tariffs can be passed on to the, to the, to the customer?
Mark Saldanha
Yeah, I mean see the tariffs work as a force measure. So technically all our customers are aware that if tariffs do come and it is something which is abnormal, if it is a small amount it’s okay. But if it is abnormally high then we would have to go back to the customer and put it forth. Obviously we are optimistic and we are hopeful that our government reaches to some understanding with the US government so that the impact is minimized to whatever level. But that said and done, we have to have different, we are working on different strategies if things, if the tariffs are high and you know it is not only going, it is not only going to the retailer and asking them for price increase because we have secured contracts till 2027 and the minute you go and ask them for a price revision, you are opening that contract up.
That’s something which is double edged sword always. But that said and done, all the retailers are understandable. They all have the same fear of tariffs and they’re all hoping that the tariffs don’t come into play. Because if it does come into play, it’s not going to be a surprise to them if you go back and tell them now price has to be adjusted because of the tariffs.
Aditya Pal
Understood. Wishing you all the very best.
Mark Saldanha
Thank you.
operator
Thank you. The next question comes from the line of Maitri Seth with Choice Institutional Equities. Please go ahead.
Maitri Sheth
I just have some questions. Most of my other questions have already been answered on the European UK business. Now that we are seeing some pricing pressures and uncertainty. Expect continued mid. Mid double digit growth mid teens. Should we. Should we look at it like a high single or low double digit growth going forward?
Mark Saldanha
Sorry, which market are you talking of? The comp as a company or you’re talking of UK by itself?
Maitri Sheth
For the company. For the company. For our UK and Europe.
Mark Saldanha
For the UK market you’re talking of. So I believe it will be flattish.
Maitri Sheth
Okay.
operator
Thank you. A reminder to all participants to ask a question. You may press star and 1. The next question comes from the line of Dipesh Sanchiti with many of finance. Please go ahead.
Unidentified Participant
Just wanted to understand how will the India UK FT work for us in the long term?
Mark Saldanha
Sorry that. Zero impact.
Unidentified Participant
Zero impact. Okay. And this quarter we saw a lot of selling from Orbimed whom we had given the shares on preferential. Have they discussed with the management about an exit strategy and are they still on our board?
Mark Saldanha
They’re still on our board. They’ve not discussed anything where that is concerned. It is. It was their call maybe for tariff reasons or whatever. I. We don’t know but they have not discussed this with us.
Unidentified Participant
Okay. And how much was almost profit was actually impacted by one of. Sorry, you were saying something.
Mark Saldanha
I’m sorry, I didn’t say anything.
Unidentified Participant
Okay. How much of the profit this quarter was was impacted due to one time expenses. I mean you mentioned about the ECL provisions and how much of this is one time and how much can be recurring.
Jitendra Sharma
Yeah. Hi Dipesh, this is Jitendra here. So as like you know as we have stated in the presentation. So there were two items. One was the ECL provision which we have made in receivables of 10.48 crores. And there was one mark to market provision of 6.2 crore which we have made. And this has come come from the forward contracts which we have taken for GBP exports to UK. So in UK you know the last year GBP was at 105 and we have done some forward selling of GBP you know for up to 100910 levels. But this year GBP has like you know outperformed and it had.
It is hovering around 170 right now. So there is some mark to market which has come in the June numbers. So these are the two items which are kind of one offs which we had in this quarter. And we don’t expect. See our receivables are pretty clean. Most of the receivables are from subsidiary companies only and top customers. So this is the only item which we had coming from our emerging market division. So broadly we don’t see any more sticky receivable in our books.
Unidentified Participant
You also mentioned about the higher employee cost due to new hires in the acquired facilities. Will that be recurring?
Jitendra Sharma
No, it is now. Of course it has. So this is if you compare year on year number. But now of course in terms of the hiring, we are not having any more additional hirings. So the employee costs and other expenses which you are seeing in this quarter, we don’t see these two items going up any further from here.
Unidentified Participant
Okay, thank you. Thanks so much and all the very best.
Jitendra Sharma
Thank you.
operator
Thank you. The next question comes from the line of Mith Raj with Aquarius pms. Please go ahead.
Unidentified Participant
Yeah, thanks for the opportunity. My question is again on the margin. So in this quarter if we exclude the impact of ECL provision, we had roughly 17.8% margin. And in one of the earlier answers you mentioned that QOQ margins will improve from year on. So just wanted to understand that margins for remaining 3/4 would be higher than current 17.8%. And second is 20% plus margin doable in FY27?
Jitendra Sharma
See, it is bit difficult right now to give a margin guidance. Definitely our objective here is to see number one to ensure how can we sustain our margins, you know, which we had till last year. So that’s the like you know, the priority right now for us. Definitely the pricing pressure in UK has softened the margin a bit. So I think we should be somewhere between last year margin and you know, the 17% what you are, you are calculating. So we should be somewhere in between that.
Unidentified Participant
For FY27 as well.
Jitendra Sharma
No, this is for current year for FY27. Again it’s bit early to give any guidance.
Unidentified Participant
Understood. That’s all from my side. Thank you.
operator
Thank you. Ladies and gentlemen. To ask a question please press star and one on your touchstone telephone. The next question comes from the line of Ahmed Madha from Unifi Capital. Please go ahead.
Ahmed Madha
Yeah, thanks for the opportunity. Just to understand a scenario where there is adverse tariff. In that case, do we get benefit by having manufacturing capacity in US through time caps? Is it meaningful? And as of now how much of our manufacturing is happening in US and how much is happening in India and maybe some in UK also.
Mark Saldanha
So, so in India in. So our revenue from a revenue standpoint of view, about 30%, 40% around is manufactured in US the rest is manufactured in India. So from today, as of today India is more viable because of few of the items which are which we Manufacture in the US are imported, raw materials are imported from China where we pay tariffs. But just answering your question, will we benefit having a platform in us? Of course we will benefit to some extent and again depending on what the tariffs are going to. The quantum of tariff is the universal question what is the tariff? What amount of tariff is it? Single digits, double digits? To what level is it going to go to? That is uncertain.
And based on that, when that unfolds then I think based on when that unfolds then we have to take concrete steps to retain our position and grow based on our objectives, what growth plans we have for the US. But today it does not make sense for us to panic because literally I don’t think anyone knows what’s going to happen tomorrow. And based on that we have to wait and watch as to how things are unfolded. Because if tomorrow India does strike a better deal and we are very optimistic on that, then taking steps, taking panic steps may backfire big time on us.
So whether we have to expand our facility out there, whether we have to continue with what we are doing, whether, whether we have to leverage low cost manufacturing from India. So these uncertainties are the ones that are most unpredictable and difficult to answer. And I guess the market is, I mean we don’t have a crystal ball. So the market is basically wait and watch, watching on what will unfold tomorrow.
Jitendra Sharma
See I would like to add here that our balance sheet is pretty strong and in case if there is need to do additional investments in US, we definitely will not shy away from doing that. So that way we are very well equipped and geared and depending on the circumstances need, we will take the next steps.
Ahmed Madha
My question was from perspective of do we have a hedge in terms of having capacity in us? My question was from this.
Mark Saldanha
So we have capacity in US but it cannot compensate because we have a very diversified portfolio out here in India that we service in US starting from RX to different dosage forms us it’s only a solid oral dosage form that we have. So technically while we may benefit from a part of it, we would not be able to benefit fully from it.
Ahmed Madha
That’s it from my side. Thank you.
Mark Saldanha
Thank you.
operator
Thank you. The next question comes from the line of Deepak Rao with KNR Securities. Please go ahead.
Unidentified Participant
Hello sir. Am I audible?
Mark Saldanha
Yes you are sir.
Unidentified Participant
I just wanted to ask how much is the revenue contribution from SEVA facility currently and what kind of growth do we expect in FY26?
Mark Saldanha
So like I answered, in the last quarter we were trending, we were trending more towards 400 odd crores. This quarter we are trending more towards 500 crores. So technically I would say we have another 40% utilization that we can do. Our aim is to go towards 800 odd crores from the facility. So we have potential of growth. And again this is happening month on month basis. We are itching forward on that.
Unidentified Participant
Got it sir. So one more question I have in mind is Australia and New Zealand. Just wanted to check how this market is expected to perform in the coming quarter.
Mark Saldanha
It will be. It is pretty much. It is pretty much how it will be. The flattish in terms of what it’s historically done, it will show a nominal growth. But technically overall year on year it’s difficult to talk about about quarter on quarter. But year on year we will definitely show a better number than the previous year.
Unidentified Participant
I’ve got it sir. Thank you so much.
Mark Saldanha
Thank you.
operator
Thank you. A reminder to all participants to ask a question. You may press star and 1. Ladies and gentlemen, to ask a question. You may press star N1. As there are no further questions from the participants, I now hand the conference over to the management for closing remarks.
Mark Saldanha
I thank you all for your continued interest and support for our company. I wish you a very good evening and a safe day. Thank you.
Jitendra Sharma
Thank you.
operator
Thank you on behalf of Markson’s Pharma. That concludes today’s conference. Thank you for joining us. And you may now disconnect your lines. Sa.