Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Sanjivani Paranteral Ltd (NSE: SANJIVIN) Q4 2026 Earnings Call dated May. 15, 2026
Corporate Participants:
Pritesh Jain — Chief Financial Officer
Unidentified Speaker
Ashwin Khemka — Chairman and Managing Director
Analysts:
Karan Thakur — Analyst
Unidentified Participant
Santosh Karunakar — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Sanjini Parental Limited Q4FY26 earnings conference call hosted by Green Advisors Private 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 assistance during the conference call, please signal an operator by pressing Star then zero on a Touchstone phone. Please note that this conference is being recorded. I now hand conference over to Mr.
Karan Thakur from Career Advisors Private Limited. Thank you. And over to you sir.
Karan Thakur — Analyst
Yeah. Good morning. Thank you. On behalf of Kirin Advisors, I welcome you all to the conference call of Sanjay Parenter are limited. From the management team we have Mr. Ashwini Kimka, Chairman and Managing Director and Mr. Pritesh Jin, Chief Financial Officer. With that now I hand over the call to Mr. Pritesh Jain for the opening remark. Over to you sir.
Pritesh Jain — Chief Financial Officer
Good morning ladies and gentlemen and thank you for joining us for the Sanjini parental Limited Q4 and full year financial year 26 post results earning conference call Disclaimer Before I begin, let me mention the standard disclaimer. The presentation that we have uploaded on the stock exchange including the interaction in this call contain or may contain certain forward looking statements concerning our business prospects and profitability which are subject to uncertainties and actual results could differ from those in such forward looking statements about the company.
For the benefits of the participants who may be joining us for the first time, Sanjeevi Parental Limited is a WHO GMP certified pharmaceutical manufacturer with over 25 years of operating experience. We specialize in sterile injectables and oral solid dosage forms with a primary focus on essential and life saving therapies. Our products are exported to more than 25 countries across the emerging markets and we operate manufacturing facilities in Navi Mumbai and supported by an in house R and D capability.
In addition to our co formulation business, we are building new growth platforms through joint ventures in IV Fluids in India and Nutraceutical manufacturing in Europe. Financial year 26 marks an important year for the company as we transition from a single engine business to a multiple vertical growth platform. It is a first year of contribution from Pune Infusion facility to the consolidated revenues overseas. Nutraceutical venture continues to build commercial transactions. This is a result of strategic investments we made over the past few years to diversify both our manufacturing base and the revenue streams.
Macro markets during quarter four financial year 26 the export environment remained normal during Jan and most of February. However towards the end of February, Iran related geopolitical conflict disrupted the trade activities across the Middle east region. The situation impacted shipping routes, vessel movement, cargo handling and export logistics across the region. Since the Middle east is a key export market for the Company, we were not able to execute exports during the month of March 2026 due to disruption in the shipping and trade movement.
As a result, revenues for the quarter were impacted. In addition, the Company witnessed an increase in the raw material and the packing input cost during March 26. Higher input prices along with lower operating leverage due to export dispatches impacted the gross margins during the quarter. Pharma Sector the pharmaceutical environment across a key export market remains robust with stable demand and healthy business activity during the quarter, we continue to see steady inquiries and consistent demand across key product categories and geographies.
Export opportunities for the Indian pharmaceutical companies remain strong driven by cost competitiveness and manufacturing capabilities and rising global demand for quality generics. Management is optimistic about the medium to long term outlook and sees significant opportunities in the international market. Company Performance Coming to the Company’s business performance due to disruption in export operations during the month of March 26th and resulting loss of export revenues. Q4 revenues witness a year on year decline.
However, the Company subsequently implemented alternative export and logistic arrangements to stabilize the shipments and normalize export operations. Management is now seeing improvement in export execution and expects a broader recovery in the export revenues during Q1 FY27 I.e. April to June 2026 quarter. Hence, we believe that the impact of the disruption is now largely behind us. IVF facility in Pune had reported revenue contribution of approximately 1.2 crore in Q3 financial 26 which increased to 2.7 crore in Q4 FY26.
The business is witnessing encouraging traction on the commercial front with customer engagement and order execution gradually improving. As highlighted earlier, while the facility itself is approved and commercialized, product wise approvals remain an ongoing process. Commercial scale up is therefore linked to addition and approval of individual products over the time. The Company continues to make progress on this front and part of operational traction is already reflected in Q4FY26 performance.
Management expects sequential further improvement in the business contribution from the facility during Q1FY27 and over the subsequent quarters as additional products get commercialized and scale up continues. Outlook for financial year 27 now coming to the broader outlook for financial 20, we expect stronger momentum across all three verticals in the babe business. With export operations now broadly normalized, we expect recovery in the growth in line with underlying demand environment and continued expansion in export markets in IVF business, FY27 should see a clearer full year impact of operations supported by gradual scale up in commercialization and product portfolio expansion.
Similarly, in Prague based Nutraceutical Venture, we expect improved traction during financial 2017 as commercial activities continue to progress. Overall, we remain optimistic that financial year 27 will be a stronger year for the company supported by improving contribution from all three business verticals. Transitional Factors now on some of the transitional factors, crude oil prices and USDR movement remain important variable for the input cost of the business. Certain raw material prices are linked to oil derived supply chain while a meaningful portion of raw material procurement remains import dependent.
Accordingly, sustained elevated crude oil prices and unfavorable currency movement can have some impact on input cost. While part of the cost increase can be passed on, some portion of the input cost pressure may have an impact on margins during the period. However, these are largely transitional factors and should moderate as operating conditions normalize now coming to the Financial performance so let me share the financial performance of the company for Q4FY26 standalone business performance the base business reported a revenue of 105.1 million reflecting continual operational movement across our core markets.
EBITDA stood at 16.58 million while EBITDA margins were at 14.7% during the quarter. Profit after tax came at 9.4 million. Segment wise performance injectable revenues stood at 46.7 million contributing to 44.43% of the revenue from operations. Tablet revenue stood at 54.6 million, contributing 51.95 of the revenue from operations. Market wise performance export constituted 85.26% of the revenue from operations at 89.62 million while domestic business accounted 14.74. Coal markets of Latam, America, Middle Eastern Africa and CIS accounted for 76.09.
The revenue from the operations consolidate performance on consolidated basis. The company reported a revenue of 132.1 million during Q4FY26. EBITDA stood at 21.73 million with EBITDA margins at 15.74. Profit after tax stood at 5.5 million with a PAT margins of 3.97 during the quarter. With this we can now open the floor for question and answers. Thank you.
Operator
Thank you very much. We will now begin the question answer session. Anyone who wishes to ask a question may press star N1 on the touch tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handstand while asking a question. Ladies and gentlemen we will wait for a moment while the question assembles. We have first question from the line of Vinos Shah from Versus Venture. Please go ahead.
Unidentified Speaker
Yeah, good morning sir. I’m audible.
Pritesh Jain — Chief Financial Officer
Yeah, you’re audible.
Unidentified Speaker
So our revenue was down this financial year. So like what were the reason for that? Like especially in this quarter and how do we accelerate from here?
Questions and Answers:
Pritesh Jain
So as I discussed earlier when the during my opening speech, the March month for this quarter was highly affected due to the geopolitical tensions on account of war between us and Iran. So the shipping routes, availability of the containers and the logistical chain was disrupted. And hence we couldn’t do major shipments which we normally do every year in the month of March. So that was the prime reason for drop in the revenues for the current quarter going forward. As I again shared in the opening speech, we have found out alternate routes and modes to ship our materials.
So we have already started the shipments and we expect a fair bit of recovery happening in the Q1 numbers for the current financial year.
Unidentified Speaker
Okay sir. And what would be your like target for FY27?
Pritesh Jain
The targets for FY27 on a base business we should be around 80, 85. And on the IV plant from the Pune we should be in the range of 60 to 65. For the annual though these are annual numbers but the quarterly numbers may vary. But on an annual basis we would be committed to this numbers.
Unidentified Speaker
Currently like tablet and index tables have over 50% of our revenue. How do you see this product next like in next two, three years? So are you? Hello.
Ashwin Khemka
Yeah.
Unidentified Speaker
Yeah. So I was saying.
Ashwin Khemka
Your voice is not clear.
Unidentified Speaker
Yeah. Is it better now?
Ashwin Khemka
Yeah, better.
Unidentified Speaker
Yeah. So I was thinking tablets currently contribute around 50% of the revenue. So how do you see this production mix evolving? Let’s just say over mix two, three years
Ashwin Khemka
In two, three and down the line the injectable will be steady and it will be increasing. But tablet and capsule portfolio will be substantially increasing. Because tablet and capsule dosages we have filed in various other countries and those those years acceptance and approvals are expected in the coming year. Few we got it last year and this we are expecting this year and it will be increasing. Tablet portfolio will be increasing more and when IV comes in picture so I will be separate and there also same thing will have export and domestic and institution.
Unidentified Speaker
Okay. Okay sir. Thank you sir. I will join back with you.
Operator
Thank you. Reminder to a reminder to all the participants that you press star event to ask a question. Reminder to all the participants that you may press STAR R to ask a question. The next question from the line of Abhishek Bhaskar from Alpha Wealth. Please go ahead.
Unidentified Participant
Hello sir. So my first question will be the new IV fluid infusion plants in Pune that have commenced commercial production. What are the current utilization levels and what does the ramp up timeline look like for the next four to six quarters?
Ashwin Khemka
CV has started commercial production last year December 2025. And it’s gradually picking up. And in the current coming year in the four quarters. So it will be gradually like 40%, 45%, 60. And by the fourth quarter it will be at the 70% utilization.
Unidentified Participant
Oh, okay. Okay. Yeah. So when do you expect the Pune facility to make material and visible contribution to your top line and margins? And what does this plant represent at full capacity?
Ashwin Khemka
This year it will be giving a representation in the balance sheet. Also as our CFO told you very clearly that this year annually we will be doing around a revenue of 60 crores. And it will be having a profit that will be contributing to the main balance sheet and by gradually improves and the capacity and utilization will be.
Unidentified Participant
Okay. Okay, sir. And also I would do know about the nutraceuticals contribute only approximately 3.445% of your revenue. Right. So yeah. Something you plan to invest behind and scale meaningfully or does it remain a small opportunistic part of your portfolio?
Ashwin Khemka
Currently we Sanjivini owns 45% in that JV. And we are under negotiation from major majority state. But it is yet to happen. When it will be happen we’ll be announcing it. So in our balance sheet the sales won’t reflect because we are minority shareholder. Only the profit will be added to this.
Unidentified Participant
Okay. Also I would like to know about the exports contribution that are nearly 78.5% of your revenue heavily. And Latin America political volatility is some of this region. How are you like thinking about the geographic diversification and de risk the business?
Ashwin Khemka
No, we are not. We have done export revenue contribution in the total turnover is 76%. Our risk is spread. We are into Latin America, MENA region, CIS, Southeast Asia. So no, nobody is having a lopsided effect. CS region is a very small contributor to the total turnouts.
Unidentified Participant
Okay. Okay. Okay. Yeah. I will be joining back in the queue. If I have further question I will ask.
Ashwin Khemka
Thank
Operator
You. Thank you. Reminder to all the participants that you start event to ask a question. The next question from the line of Pratiksha who is an individual investor. Please go ahead.
Unidentified Participant
Thank you. Good morning. I just wanted to understand on hemp land. So we have guided for approximately 16 million bottles final capacity. So could you share the productions and the sales volume achieved in the last quarter along with what is the expectation for FY27?
Ashwin Khemka
See here the capacity installed is correct. 50 million. And last quarter we did approximately
Pritesh Jain
We had a revenue of 3.5 crores in all
Ashwin Khemka
Four months.
Pritesh Jain
Yeah. And as far as the bottle counts are concerned it would be roughly 2 odd lakh bottles only as of now.
Unidentified Participant
Okay. And what about the revenue outlook for Prague ventures?
Ashwin Khemka
Prague Venture is a nutraceutical. And as we told earlier also in the replies we own 45%. We did a revenue of 500 to 600€000 last year. And their balancing accounting is Jan to December. And being the first year the profit did not come to our books. It will be released only in current year and that is ramping up. And this year we have a good order book in Prague and we are doing healthy business there. And that is not affecting much due to the logistic issues. As you all are aware, the logistic issues have been a big issue.
Not only logistic is only a part but with the logistics comes many supplies from Middle east like aluminium. India is dependent heavily on aluminum from Middle east plastics. So those things are erratic in supplies and the prices have gone up. So you have to maintain inventories when to procure the orders and have a stock with you to suffice the current year.
Unidentified Participant
Please guide me like how 2 lakh bottles give us the 3 crores revenue in plant. Can you please elaborate? Yeah, yeah. Just to correct.
Pritesh Jain
Yeah, just to correct myself when it said 2 lakh it wasn’t 2 lakh, it was 2 million bottles. So that is in correction from my side.
Unidentified Participant
Okay,
Pritesh Jain
So 2 million bottles is contributing a revenue of around 3.5 crores.
Unidentified Participant
Considering we have seen these logistic deception in the last quarter how we are seeing this panning out for the next one or two parties. Will we see some pain in the next one or two quarters or we are already over with it?
Ashwin Khemka
No. See this till it is normalized. I don’t know how long it will take to be wait for the government is negotiating. But we have found out different routes. We are transporting our goods to Saudi Arabia, to Turkey and from there we are distributing it. And it is cost has also increased in the logistics fare and other route is to Southeast Asia. So these are the tools everybody is focusing on. And due to shortages of container and the shipping lines.
Unidentified Participant
So
Ashwin Khemka
This challenge will be there for few one or two, three months and then we hope it will be normalized.
Unidentified Participant
As you mentioned the Logistic cost and every expenses will be. We saw what margins can we expect for FY27? It will be deep or it will be even in the range of 16, 17%.
Ashwin Khemka
No, the margin dip will not be there. As you know, the dollar has appreciated. So that is covering up most of the things. So that part will be taken care of. On that margins will be in the line. What has been told.
Unidentified Participant
Thank you. Thank you so much.
Operator
Thank you. The next question from the line of Matrisha from Sapphire Capital, please go ahead.
Unidentified Participant
Hello. Yeah, hello. Good morning. First thing on the IV side, could you help me out? But what sort of steady state margins do you expect on the IV business going forward?
Pritesh Jain
Going forward, on an annualized basis we expect EBITDA margins of around 17 to 18% percentage.
Unidentified Participant
And currently for FY26, did we break even on the margins for the IV business?
Pritesh Jain
Yes, we were able to achieve the EBITDA margin targets which we mentioned right now. But the interest in the depreciation part is taking since it wasn’t newly operated or newly started business. So gradually even that will even out and the bottom line will come out properly.
Unidentified Participant
So we expect to break even in FY27. Is that. Is that. Yes, definitely
Pritesh Jain
Yes.
Unidentified Participant
And the capacity here is 16 million or 1, 6. 16 million.
Pritesh Jain
The capacity for the whole year is 16 million on annualized.
Unidentified Participant
Okay.
Pritesh Jain
Okay.
Unidentified Participant
And the 2 million bottles that we kind of had sales for the 3.5 crore, that was for quarter three and quarter four, is that correct? Okay. Okay. Secondly you mentioned that we’ll be also increasing the IV business internationally. So the guidance that you gave of 60, 65 crores, are we expecting any international sales coming in this year or.
Ashwin Khemka
Yes.
Unidentified Participant
Oh, this year. Okay.
Ashwin Khemka
Yeah. We are expecting a sales this current year only.
Unidentified Participant
Okay, that is great. And the margins on the export side are on the similar end. 17 to 18%.
Ashwin Khemka
Yes, similar. And somewhere better also.
Unidentified Participant
Sometimes better also. Okay. And the 80, 85 crore kind of base guidance you’ve given for this year it seems what sort of growth are we expecting on the tablets? On the injectables and nutraceuticals, where do you see the growth coming in from for this 8085crore guidance?
Ashwin Khemka
The growth is coming majorly from the metal side. And tablet also coming to equally 1012 growth will come from injectable and tablet is 7 to 8%. And NUCA will also ramp up this year. 8 to 9%.
Unidentified Participant
8 to 9%. And on the nutraceutical side, any timelines and when we can be the majority stakeholders for that business or it’s still in the.
Ashwin Khemka
We have been trying since last two years. We are waiting hope for the good.
Unidentified Participant
Okay, so the nutraceutical business we are directly adding the pat to our numbers, is that correct? Right now we won’t be spotting any level games.
Ashwin Khemka
Yes, we. We add the pack number to the balance sheet. But this year we could not end because that was the first year and limitations were not here. Current year it will be limited and it will be added.
Unidentified Participant
Okay, so this year there was no kind of proportion from neutrality?
Ashwin Khemka
No, no, no. It was in our notes. We have mentioned it. We had our contribution was there. And since it’s the first year the European Union doesn’t allow to take the dividend with profits first year next year it will be beautiful.
Unidentified Participant
Okay. Okay, that is great. And any. Any issues on the sales in April and May to Middle east right now because it kind of contributes the majority portion of our export revenue. So
Ashwin Khemka
Major. It’s not majority, it’s a divided in our regions. Yeah. Though we face some challenges. But now we have found a different routes where we can supply our materials to those areas. As I told my in my earlier statement, we are looking via Saudi Arabia and Turkey to pass on the consignments in those regions
Unidentified Participant
And they are agreeing to take on the kind of extra charge on the logistics that is being added. Yeah, some.
Ashwin Khemka
Some too. Yeah, yeah. You have read some government notification also some portion of this is going to be reimbursed by the government of India. Some small person will be taking towards and some will be the government buyer.
Unidentified Participant
Okay. And on the aluminum and plastics also you mentioned that there’s sourcing difficulties. So are we able to kind of find alternative channels for those as well for a. Raw material?
Ashwin Khemka
Yeah, yeah, raw material. There’s not much issue here, only the packaging. But like plastic is a major component and aluminium so that we have found various other sources from China, Taiwan.
Unidentified Participant
Yeah, that is it for my side. Thank you.
Operator
Thank you. Reminder to all the participants that you press star N1 to ask the question. The next question from the line of Try Vikram Gupta from who is an individual investor. Please go ahead.
Unidentified Participant
Yeah. Hi. Firstly I just wanted to understand a bit on the receivable side. So. So we actually see receivables from FY25 to FY26 have stayed at similar levels. But if we compare to FY24 numbers there is a huge jump in receivables. So I just wanted to understand the underlying reasons behind this.
Pritesh Jain
The receivables. If I compare to previous financial year that is March 25at 17.3 last year. This year we are at 11.5. So there is an improvement in number of days. Yes. Visa visas this year.
Unidentified Participant
Yeah. So I want. But if you see last two, last year the receivables were considerably less. So why has this spurt in receivables come.
Pritesh Jain
Yeah, so this I see the turnover for last to last year the turnover was too low. We were at around 54 and we are still growing from that stages. So as we grow further this number may vary even further.
Unidentified Participant
Okay. But sort of sales has grown by 14 crores and receivables have grown by around 10 crores. So I just wanted to get an idea around that.
Pritesh Jain
Dear C. The receivable numbers may not be in proportion to the increase in the revenues. It all depends on my newer customers terms of payment with the customers.
Ashwin Khemka
Gentlemen, just see we had a sales turnover of the base business was 65 crore out and the receivable was 11 and a half crore. Okay. And this is just two months 65 days cycle. And if you see last year it had gone up to 90 days. So it is, it has improved. So though entire market is not a cash market or an oil market. So 60 days is a very fairly good for a farmer in today’s scenario. If you’re able to receive the.
Unidentified Participant
Yes, thank you for that. Next question that I have is regarding the infusion plant that we have. So you’ve been guiding for great good volume growth from this quarter. So I just wanted to understand when is the timeline when we’ll be on a 10 to 15 crore quarterly run rate. Can you just shed some light on this?
Ashwin Khemka
From second quarter it will be same line and we have already started ramping up and this quarter will be also a good quarter. But analyze we have told very clearly that we are going to cross around 60 crores.
Unidentified Participant
Okay. Is there some quarter that you’re expecting that we’ll have an inflection point where we can reach 10 to 15 crores?
Pritesh Jain
It would be difficult to comment on this right now because as I earlier said we are more focused for the annualized numbers and commenting or saying anything for the quarter on quarter would be difficult at this juncture. But definitely as we move forward from Q1 to Q4 we will be moving northwards only.
Unidentified Participant
Oh, and lastly what margin profile are we expecting from our base baseline business going ahead?
Pritesh Jain
So the baseline business the EBITDA would range around 15.5 to 16.5 percentage.
Unidentified Participant
Thank you.
Operator
Thank you. We have next question from the Line of Rupensha who is an individual investor. Please go ahead.
Unidentified Participant
Hello, Good morning. Good morning sir. It’s. Thank you for giving me the opportunity. So my first question is that the pharmaceutical and injectable space is seeing increase in competition from both like domestic and international players. So how are we differentiating on quality or pricing or customer relationship? Where is our competitive mode? I want to ask?
Ashwin Khemka
See, we are into electoral business for more than almost two and a half, 25 years more and we have not seen any quality issues and everything. And our customer support and our customer tires are more than hitting us home. And we have been in developing new products every year for this markets and finding new doses every year. So our base business is stable and with the customer base it is increasing gradually and we have opening new markets every year.
Unidentified Participant
Okay. Okay. So it’s like a legacy and relationship we have.
Ashwin Khemka
Yes,
Pritesh Jain
Plus we are more focused on the quality. So that is what is differentiating us. Plus the turnaround time for deliveries of the material with the customers new as well as the past. So that is one more point which is differentiating us from the other players in the market.
Unidentified Participant
Okay. Can you lose any players direct like Apple to Apple comparison?
Pritesh Jain
It would be difficult to comment on the peers for an Apple to Apple comparisons because the markets which we deal, the products which we deal may or may not be the similar markets and the products for them as well.
Unidentified Participant
Okay, so any few if you want to mention them.
Pritesh Jain
Yeah, I didn’t get the last sentence which you mentioned. I
Unidentified Participant
Mean any few. If it’s not an Apple to Apple but any business vertical, we are, you know, similar with them. So any peer you would like to mention?
Ashwin Khemka
Let’s see there F is a company C license is there?
Unidentified Participant
Okay. And
Ashwin Khemka
These are the companies they do what? Similar portfolios.
Unidentified Participant
Similar
Ashwin Khemka
But they are
Unidentified Participant
Okay. Okay. Right. My second question is have you seen any pricing pressure reviewer or in the past years, have you? How are you managing without sacrificing margin? That’s the case?
Ashwin Khemka
No, no, we are not importing much of our material. Our import contribution is less than 1% of the total.
Unidentified Participant
Okay. Worry for the disability.
Ashwin Khemka
Third
Unidentified Participant
Question. Sorry, sorry. Yeah, my actually third question is could you give us a sense of our current working capital cycle like data days or inventory days and
Pritesh Jain
There is a disturbance from your side, please, There’s a call coming to you either we are not able to hear you.
Unidentified Participant
Sorry, let me repeat my question but could you give us a sense of your current working capital cycle like data days, inventory days.
Pritesh Jain
See the data days as I said earlier also we are improving year on year. Okay. We will continue to improve. So right now from this financial year, financial year the data days were around 65 to 70 days. We would be in the range of 55 to 16. In the coming periods the creditors will also improve because the more we have a free cash flow, we can better manage the creditors and get higher discounts if at all. So this is how the working capital will go look like going forward.
Unidentified Participant
Okay. Any. Any sales point there are especially in given high expense concentration. No. Okay. And when do you think? When do you think? About five years from now as our future. Where does we look at the like you know, revenue mix or geographics or any product profile.
Pritesh Jain
So it’s too long a period to comment right now. So we won’t be committing commenting right now anything beyond a year.
Unidentified Participant
Okay. Okay, fine. Just let me get back to the queue. Again, thank you for answering the questions.
Pritesh Jain
Thank you.
Operator
Thank you. Reminder to all the participants that you press RN1 to ask a question. We have next question from the line of Santosh Kura Karan from Financial Finesse. Please go ahead.
Santosh Karunakar
Thank you. So sir, what is the contribution of the Middle east for our top line?
Pritesh Jain
So it’s in the range of 40 to 45 percentage. So when we say Middle east, we say Middle east and Africa region.
Santosh Karunakar
Oh, all right. Okay. And can you please quantify the impact of this raw material price hike on the margin?
Ashwin Khemka
Raw material price have increased though in the month of March it was. It had skyrocketed abnormally due to this war and certain speculation in the market who has a material they jack up the prices. But now it is settling down and we are covered and we usually keep inventory of almost two months.
Santosh Karunakar
Okay. And if this price hike continues or sustain, will we be able to pass on the raw material price increase to the customers?
Ashwin Khemka
Yes, yes, yes. We are very well aware of and we have done the same in the past. Also during COVID times also we had passed on this one to the customers.
Santosh Karunakar
Thank you. And for the Pune IV facility, how many products are currently approved and how many are in the pipeline?
Ashwin Khemka
Currently we have 5 approval and 18 are under pipeline.
Santosh Karunakar
And what could be a timeline for the approval which are in the pipeline?
Ashwin Khemka
The pipeline approval should have come in the month of February and March. But due to the issues in the approval process and transfer of people in the government, it takes some time. But we expected quite a chunk of approval in this month. Only. The approval process initially it used to be very easier. Now if anybody who started a new plant and Getting approval. It is taking people two, two years, three years. Since we are in this field and injectable for many years. So it was easier for us to get it.
But though it took some time and now we are in the line with this.
Santosh Karunakar
Excellent. Thank you. And when you projected a top line of around 60 crores from this I. So are you considering doing, you know this 18 products which are in the pipeline as well to contribute
Ashwin Khemka
Not full 18 from that 18, maybe 6.
Santosh Karunakar
All right, thank you. That’s all from my side.
Operator
Thank you. Reminder to all the participants that you want to press star and one to ask the question. The next question from the line of Shakshi Shinde from Shah Cult Agency. Please go ahead.
Unidentified Participant
Hello. Am I audible? Yeah,
Operator
You are.
Unidentified Participant
I have two questions for the full year is around. Your
Ashwin Khemka
Voice is. Your voice is not clear. Voice is not clear. We are not able to hear.
Operator
Can you come closer to the.
Unidentified Participant
Sir, my question is on margins on EBITDA margins. I. I think this quarter we report a softer margin compared to the full year margin. So my question is to understand what will mean the margin target for FY27.
Ashwin Khemka
The base business. We learned the margin will be increasing as we have been in this similar market and in the last hiccups were there for the month of February end and March. And our many approvals are expected in this month and by this quarter. So newer and good higher totals are then affected
Unidentified Participant
Again for the fat margin. If we look we have lower.
Ashwin Khemka
We are not able to hear a single word. Your voice is cracking. Are you able to hear me now?
Unidentified Participant
Sir, Are you able to hear me now?
Ashwin Khemka
Yes, now A little better.
Unidentified Participant
Yeah. Okay, so my next question again on margin on fat margins which is like lower if we compare to the full year. So could you just walk us through key drivers of that gap and whether any of those are on off in nature.
Pritesh Jain
See, the pat margins are derived from the EBITDA margins only. So the way my EBITDA margins will vary, the similar variance would be also visible in the pat margins. So as we have some good products which are expected with higher EBITDA margins. So if those come into and as I already provided the guidance, the base business would have an ebitda margins of 15.5 to 16.5 percentage range. So accordingly the pat margins will also reflect going forward.
Unidentified Participant
Okay. And as a new Pune plant scale up, how do you expect the fixed card absorbation to play? And what is the medium term EBITDA margin target for the business
Pritesh Jain
Even for Pune? We have said for the whole year we would be looking at the number of around 60 odd crores on the top line and with an EBITDA margins in the range of 17 to 18%. So this will play out throughout the quarters. Maybe a quarter or two. We may see initial two quarters. We may see a lower EBITDA or strain on margins because the plant is newer, the expenses would be higher. But as we scale up in Q3, Q2 and Q4 the margins would be better and we would end up the whole year at around 17 to 18% of EBITDA for Pune plant as well.
Unidentified Participant
Thank you so much. Thank you and have a good time.
Pritesh Jain
Thank you.
Operator
Thank you. We have next question from the line of Vinosha from BS Master. Please go ahead.
Unidentified Speaker
Yeah, hello sir. Am I audible?
Unidentified Participant
Yeah, you are audible.
Unidentified Speaker
So sir, manufacturing, you highlighted the manufacturing. So could you walk us through like some specifically operational changes or process improvements that you made in FY26 and that could structurally improve our margin.
Pritesh Jain
See improvement of margins come from various sources as everybody knows and even you know. But as far as the structure changes, we are very closely monitoring our input cost, the API, the packing material cost so that the margins which we are targeting should be delivered to you.
Unidentified Speaker
Are we able to pass on the input cost or are we like taking a date on our payment? How is it?
Ashwin Khemka
Yes, we are able to pass on because we don’t have a long term contract with our buyers wherein we are stuck for the price fixation. So our price part is open depending on the international price.
Unidentified Speaker
Thank you.
Operator
Thank you. That was the last question I now had conference over to Mr. Karan Thakur for closing comments.
Karan Thakur
Yes, thank you everyone for joining the conference call of San Jose parental England. If you have any further queries you can write to us@research advisors.com Once again thank you everyone for joining the conference.
Operator
Ladies and gentlemen, on behalf of Green advisors that conclude this conference, thank you for joining us and you. Thank you.