{"id":183613,"date":"2026-05-20T08:35:18","date_gmt":"2026-05-20T12:35:18","guid":{"rendered":"https:\/\/alphastreet.com\/india\/eris-lifesciences-ltd-eris-q4-2026-earnings-call-transcript\/"},"modified":"2026-05-20T08:39:55","modified_gmt":"2026-05-20T12:39:55","slug":"eris-lifesciences-ltd-eris-q4-2026-earnings-call-transcript","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/eris-lifesciences-ltd-eris-q4-2026-earnings-call-transcript\/","title":{"rendered":"Eris Lifesciences Ltd (ERIS) Q4 2026 Earnings Call Transcript"},"content":{"rendered":"

Note:<\/strong> This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.<\/em><\/p>\n

Eris Lifesciences Ltd (NSE: ERIS) Q4 2026 Earnings Call dated May. 20, 2026<\/span><\/strong><\/p>\n

Corporate Participants:<\/h2>\n

Krishnakumar Vaidyanathan<\/strong> \u2014 Executive Director & Chief Operating Officer<\/em><\/p>\n

Amit Bakshi<\/strong> \u2014 Chairman & Managing Director<\/em><\/p>\n

Analysts:<\/h2>\n

Harith Ahamed<\/strong> \u2014 Analyst<\/em><\/p>\n

Kunal Randeria<\/strong> \u2014 Analyst<\/em><\/p>\n

Unidentified Participant<\/strong><\/p>\n

Kunal Damesha<\/strong> \u2014 Analyst<\/em><\/p>\n

Rahul Agrawal<\/strong> \u2014 Analyst<\/em><\/p>\n

Presentation:<\/h2>\n

Operator<\/strong><\/p>\n

Krishna Kumar, Chief Operating Officer and Executive Director. Mr. Sachin Shah, Chief Financial Officer and Ms. Kruti Rawal, VP, MNA and Investor Relations. As a reminder, all participant lines will be in listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Please note this call is being recorded. I would now like to hand the conference over to Mr. V. Krishna Kumar, Chief Operating Officer and Executive Director. Thank you. And over to you, sir.<\/p>\n

Krishnakumar Vaidyanathan<\/strong> \u2014 Executive Director & Chief Operating Officer<\/em><\/p>\n

Yeah, thank you. Good afternoon. Am I audible?<\/p>\n

Operator<\/strong><\/p>\n

Yes, sir. You’re audible, sir.<\/p>\n

Krishnakumar Vaidyanathan<\/strong> \u2014 Executive Director & Chief Operating Officer<\/em><\/p>\n

Great. Welcome to the quarter four and the folio results presentation. We will structure the discussion in three parts as usual. Domestic formulations, international business and the consolidated statements. So first with the domestic business results. In quarter four, our domestic business grew by 12% and EBITDA grew by 10% with a margin of 37%. For the full year, our revenue growth was 11%. An EBITDA growth of 12% with a 37% margin. An EBITDA margin expanded from 36.5% in FY25 to 37% in FY26. In terms of absolute numbers, quarter four revenue was at 671 crores and the full year DBF revenue was at 2,778 crores.<\/p>\n

The quarter four EBITDA was at 246 crores. 10% margin slightly depressed because of the SEMA 2 type pre launch expenses. Full year EBITDA for DBF was 1,026 crores which is a 12% growth year on year. And EBITDA margin expanded from 36 point 5% in FY25 to 37% In FY26. So looking back at the key hits and misses during the year, the key misses were largely two. Number one, there was a revenue loss of around 55 to 60 crores because of significant new launches that were earlier planned but then they had to be abandoned or delayed.<\/p>\n

So G. Saxenda was a weight loss SKU of lira glutide. We had to abandon that due to a delay in regulatory approval. And as part of Ezak Sereno, which were two very important launches planned for FY26 got deferred to FY27 on account of regulatory delays. On the insulin side, we again incurred a sale loss of around 50 crores in FY26 on the back of a similar number in FY25 because the insourcing of the products and the commercial manufacturing from Bhopal has been delayed by nearly a year again on account of regulatory delays.<\/p>\n

So while we continue to be dependent on third party supplies. In FY26 we had to take this revenue loss because the supplies will not commensurate with the demand. And thirdly, our critical care business did not take off as expected. Looking at the things that work very well the Insulin Segment Performance the numbers speak for themselves. Our market share in RHI cartridges increased from 13% to 24% during the course of the year. Our market share in the overall insulin segment, which is RHI plus glargine increased from 12% to 16% during the year and the growth in insulins for us outpaced the covered market growth by nearly five fold.<\/p>\n

So the CVM growth was 6.7% and the errors growth was 32%. The derma segment consistently outperformed its covered market in all four quarters and for the financial year errors growth was 14.2% versus the covered market growth of 8.6% with EBITDA margin well above the DBF average of 37%.<\/p>\n

Harith Ahamed<\/strong> \u2014 Analyst<\/em><\/p>\n

Our semaglutide<\/p>\n

Krishnakumar Vaidyanathan<\/strong> \u2014 Executive Director & Chief Operating Officer<\/em><\/p>\n

Brand Sunday has taken off to a robust start. We launched the product in two presentations, vial and pen, and for the very first full month that is April 26, as per the reflection in IQBRIS is ranked number one in injectable semaglutide by sale volume and ERIS is ranked number two in the injectable semaglutide by sale value. So this we take this as a strong reflection of the present strength of the ERIS injectable diversity platform. Moving over to the key numbers, as per iqvr, the ERIS market share in injectable SEMA by units started at 13% in March and stood at 22% in April.<\/p>\n

Eris market share by sale value started at 5% in March and stands at 13% in April by way of prescription share. ERIS market share in injectable SEMA stands at 22% in May, having started at 8% in margin 18% in April. So the other noteworthy point here is that we launched the vial in March and we launched our pen in mid April with just one SKU, which is 2 milligrams. But despite that, we clogged a market share in the pen segment of 11% by volume and 6% by value. So recapping the salient features of our semaglutide launch, the market size and structure is evolving in line with our expectation.<\/p>\n

So the market size estimate in the first month was 1 and a half to 2 lakh. Active users of generic semaglutide over 75% of the prescriptions are being driven by diabetes rather than obesity. Wires as a percentage of the overall injectable market stood at 21% in April. This is by volume and we expect this number to settle down at 25 to 30% on a steady state basis. Our SEMA launch was in a phased manner post the loss of exclusivity. So we launched Sunday while In March Sunday pen 2mg came in mid April.<\/p>\n

We launched the 4mg Sunday pen in early May and we expect the obesity SKU to be launched in July. Our products are priced lower than competition. We believe that these are more sustainable price points in the long term. Our vials are priced at Rupees 1290 per unit and our pens are priced at Rupees 3200 per unit for both the 2mg and the 4mg SKUs. Happy to note that our first month performance validates our ingoing thesis of being able to take a leading position in SEMA based on the strength of our insulin franchise.<\/p>\n

Three aspects of this which we would like to recap. One is our patient care platform which is focused on developing and nurturing long term relationships with patients. Secondly our credibility and market share with the key opinion leaders in the Diabeto endospace and the long standing experience and supply chain of handling cold chain products. We expect tailwinds for Sunday Pens starting quarter two of this year because a we would have insourced the manufacturing of Sunday pens with a phase one insert capacity of 5 million units per annum and this will lease out any teething, you know, supply issues alongside considerable margin improvement.<\/p>\n

Moving on to our DBF Business guidance for the current financial year 2627. The FY26 base revenue was 2778 crores and we guide to a growth of 30% over covered market growth for the current financial year. We expect DBF EBITDA for the current year to come in at 37% which is a similar level as the financial year 26 and we expect the H2 margin to be higher than H1. Moving on to the international business as against a Q4 revenue plan of 115 crores we ended the quarter at 86 crores. We were able to not ship out almost 30 crores of finished goods due to supply chain disruptions which resulted from a situation that we are well aware of versus the 375 crore targeted revenue for the year.<\/p>\n

We closed the year at 348 crores with a growth of 7% Q4 EBITDA came in at 28 crores with a margin of 32.4% and FY26 EBITDA came in at 110 crores with a margin of 32%. We got the outcome of the EU GMP inspection last month and we have a list of non compliance observations which we need to remediate. These are largely procedural in nature with minimal impact on the existing business and remediation of these observations remains a priority for us on the existing business. We are guiding to a revenue growth of 18 to 20% this year with EBITDA margin at similar levels as FY26 and the EU.<\/p>\n

CDMO products will get commercialized post the reinspection and reapproval of the facilities. Moving on to the consolidated picture consol Q4 revenue growth came in at 7% and EBITDA growth at 8% and for the full year the revenue growth came in at 8% and EBITDA growth at 10%. Let’s look at these numbers in detail. Console revenue for Q4 was 757 crores and for the full year was 3129 crores. Console EBITDA for the full year was 1120 crores. I’d like to call out a couple of things in particular. If we look at the core business which excludes trade generics which we discontinued in FY26 and the low margin DBF injectables which we have spoken about before, FY26 revenue growth came in at 10% and FY26 EBITDA came in at 1,146 crores.<\/p>\n

So this is higher by 26 crores over our reported EBITDA 1,120 crores and this represents a year on year EBITDA growth of 13% which which is reflective of what is happening in the core business. The consolidated EBITDA margin also comes out to be 37 and half percent. Looking at the consolidated P L for the year I’ll call out the highlights. The profit after tax from continuing operations came in at 132 crores in quarter four which is a 29% growth and for the full year came in at 498 crores which is a 34% year on year growth.<\/p>\n

So this is the TPS acceleration which we spoke about earlier where a 10% expansion in EBITDA gave us a 34% expansion in profit after tax. The reported PAT came in at 279 crores for the quarter and 648 crores for the full year this is because of a one off upside of rupees 150 crores from a deferred tax adjustment. EPS from continuing operations came in at rupees 36. In FY26. The effective book tax rate for the year was 22%. Excluding the TTL impact, it’s down by 140 pips from last year. Finance cost for FY26 was down 17% from last year.<\/p>\n

Capex for the financial year came close to 300 crores largely on biologics and sterile injectors. The closing net debt for the year was rupees 2,255 crores which is at 2x of EBITDA and down two turns over the last two years. OCF to EBITDA ratio came in at close to 50% for the financial year versus 105% for the last financial year. This brings us to the end of this presentation and we can now open up for Q and A.<\/p>\n

Questions and Answers:<\/h2>\n

Operator<\/strong><\/p>\n

Thank you sir. Ladies and gentlemen, we will now begin the question and answer session. Participants who wish to ask questions may do so by clicking the raise hand icon at the bottom of your screen and wait for your turn to speak. When prompted you can accept the prompt on your screen, unmute your audio, introduce the firm you represent and ask your questions or give comments. We’ll wait for a moment while the question queue assembles. The first question comes from the line of Kunal Randeria.<\/p>\n

Kunal Randeria<\/strong><\/p>\n

Yeah, hi, good afternoon and thanks for taking my question. So the TPF growth of 12% looks pretty solid and in insulins also you have done pretty well. But it also indicates that the X insulin business growth would have been maybe around 8 to 9% only. So is my understanding correct? And this is how the growth shape up in the next couple of years also.<\/p>\n

Amit Bakshi<\/strong><\/p>\n

Can you say it again please? I just missed you.<\/p>\n

Kunal Randeria<\/strong><\/p>\n

Yes, AMIT sir. Amit sir, I meant you see your domestic branded formulations did pretty well. 12% growth in insurance. You seem to have been doing exceptionally well again but it kind of indicates that your ex insulin business, other than insulin, that business would have grown only around 8 to 9%. So is my understanding correct here and is this how the growth will look in the next few years?<\/p>\n

Amit Bakshi<\/strong><\/p>\n

I don’t think. I think you know when you see this data now the biggest drag on this data is OED the OAD growth has been a minimal, I think 2, 3, 4%. Now OID we had a BBC MV band last year which was 30 crore for us which internally is like 4, 4 and a half percent. So what will you see is that that ban happened in the month of April last year somewhere there.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Yeah, April.<\/p>\n

Amit Bakshi<\/strong><\/p>\n

So by May what will you see that the base correction would happen? So that is only one thing. But you know the, the way April May is shaping up, we can tell you that, you know, your logic might not be, might not be correct. We are seeing a little bit of a, you know, rebound in OED and then we are launching a couple of more products. The as external which I spoke about about later. So I think X insulin double digit growth is something which could be easily achieved.<\/p>\n

Kunal Randeria<\/strong><\/p>\n

Wow, that’s, that’s good to hear that good to hear. Sir. Second comment maybe related to the first one is on semaglutide. Interesting comment you have made by diabetes seems to be the driver in the market. But can you tell us which current therapies or the line of treatment is it replacing? And do you think it can maybe pose a threat to the entire OAD space also? Maybe let’s say instead of A, you know, DPP4, doctors are now giving a GLP1. So will it hit your DPP4 possibly in future?<\/p>\n

Amit Bakshi<\/strong><\/p>\n

What you’re saying is technically right. It’s basic science that you know, what GLP gives you is like 100 times of what DPP4 gives you. So D in the presence of GLP, DPP4 doesn’t really, you know, moves the needle. But look, DPP4 is like a everyday, it’s a first line treatment for everyday diabetes. And glp we expect, I expect say a million and a one and a half million patient by the end of the year, stable patient. So while what you’re saying is correct, but out of the overall universe of diabetes patient, these 15, you know, this one one and a half billion patient is too less to really, you know, move the needle.<\/p>\n

But yes, there could be a slowdown in the growth rate. But please do not consider at this point of time that we will see any kind of a downturn in any uavs. Not because of any technical reason, just because the denominator is going to be. The denominator is very high and the number of patient we expect on GLP is not going to be that high in the first year comparatively.<\/p>\n

Kunal Randeria<\/strong><\/p>\n

Right? Right. Right sir. Got it. And just one more financial question if I can, sir. Receivables and inventory have gone up substantially, especially receivables, you know, from 450 crores to somewhere around 680 crores. So maybe care to shed some light on this?<\/p>\n

Amit Bakshi<\/strong><\/p>\n

Yeah, so I think inventory large Inventory has gone up because of our international business. That is where because of, you know, early on when we saw this disturbance, we piled up a lot of inventory in the international business. And because last last quarter we could not ship it out. So it’s showing up. We did a similar exercise for our domestic business also where you do some key APIs of ours are moving as much as 70, 80%, you know, higher. So we created a large inventory there. So that is inventory.<\/p>\n

The second is the revenue days. Now revenue days is something which we need to correct. Right. I think that the debtor days. I’m sorry, I think a good number for debtor days, you know, more like 60 days. And that is what we are aiming. I think within two quarter we should be up there.<\/p>\n

Kunal Randeria<\/strong><\/p>\n

I got that, sir. But why would it go up so much in one year from 458 crores to 680? I mean, there has to be some reason behind this. Right?<\/p>\n

Krishnakumar Vaidyanathan<\/strong><\/p>\n

So,<\/p>\n

Amit Bakshi<\/strong><\/p>\n

Yeah, reason is. Kunal. Yeah,<\/p>\n

Krishnakumar Vaidyanathan<\/strong><\/p>\n

Take. You want to say something? Yeah, yeah. So Kunal, just to, you know, build on what Amit was saying, the, the strategic stalker. A. And then we had finished goods which we could not ship out. So this is a significant magnitude. I mean, there is no point in calling out these numbers. But we have taken like, you know, almost nine months of inventory buildup as far as RM and PM are concerned. So this is a considerable amount. And this was a conscious call.<\/p>\n

Amit Bakshi<\/strong><\/p>\n

And yet today also international business has really contributed.<\/p>\n

Krishnakumar Vaidyanathan<\/strong><\/p>\n

Yes, because we didn’t collect much in quarter four. Yeah. Because of all these disciplines. So<\/p>\n

Amit Bakshi<\/strong><\/p>\n

Kunal, what we hear is because, you know, the dollar is moving here and there and you know, it was delivered at a time when it was here. So, you know, there’s a little bit of things which are going along, which are going. But my team tells me that, you know, the international piece will be fixed.<\/p>\n

Krishnakumar Vaidyanathan<\/strong><\/p>\n

Yeah, simple. Because as of today, you know, the 20th of May, so the international debtors are lower by 25% already. What you’re seeing is the 31st of March number. Right. But I’m just talking about ongoing operations. So we’ve already started collecting this quarter, which is why Amit made that comment that in a couple of quarters we are confident that debtor days will come back to normal.<\/p>\n

Kunal Randeria<\/strong><\/p>\n

So as long as. Yeah, I mean there is no risk of a bad debt. Right. I mean, that’s the takeaway.<\/p>\n

Krishnakumar Vaidyanathan<\/strong><\/p>\n

No, no, no.<\/p>\n

Kunal Randeria<\/strong><\/p>\n

Oh, perfect, sir. Thank you. Thank you very much and all the best.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. The next question comes from the line of Kunal. Damesha.<\/p>\n

Kunal Damesha<\/strong><\/p>\n

Hey, Hi, good evening, this is Kunal from Macquarie Capital. Just one for Amit on you know, the uptake of semi in diabetes. What, what kind of trend are you witnessing? Is it used for the existing patients more or let’s say the new patients which are being started on, on semaglutide. And if it is existing patient then I believe that the risk to the existing therapies would be much lower. Right. Because existing therapies would continue for the same patient. So some color would be helpful. And the second aspect of this question is in terms of dose titration, how it works, how much time does it take for stabilize on a particular dose of semaglutide?<\/p>\n

That’s my first question.<\/p>\n

Amit Bakshi<\/strong><\/p>\n

Yeah, look we, I think the first month reflected generics reflected around 40, 45 crores and there had been some number crunching which is being done that you know, 50000 to 1 lakh patients have been added. So I see, I see a lot of you know, enthusiasm but it is a cautious enthusiasm. Right. I, I feel that many, many people, many doctors are taking their own time. We, you know, they would come on board in a while<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Now.<\/p>\n

Amit Bakshi<\/strong><\/p>\n

Yes, we are seeing, look, if you look at the usage, 70% of the patient on diabetes should require GLP as a, from a guideline perspective. But we have just started. So the first level of patients which we are seeing are the patients who, who have diabetes uncontrolled and have a visible fat. So right now if I tell you my own numbers we have been looking into because our, our page, our people services the patient so we get an access, we can tell you BMI less than 30. The prescription is only 10. So 90 of the.<\/p>\n

So even in diabetes is bmi more than 30.<\/p>\n

Kunal Damesha<\/strong><\/p>\n

So that is where<\/p>\n

Amit Bakshi<\/strong><\/p>\n

The starting point is. The second, second thing to see that BMI more than liver, fatty liver. Right. Again, so that is where it has started<\/p>\n

Kunal Damesha<\/strong><\/p>\n

And<\/p>\n

Amit Bakshi<\/strong><\/p>\n

You know it’s been one, one and a half month, right. Patients start with 0.25 and 0.25 is generally a warm up kind of a thing.<\/p>\n

Krishnakumar Vaidyanathan<\/strong><\/p>\n

So<\/p>\n

Amit Bakshi<\/strong><\/p>\n

In the next month onwards we will have patients coming back also.<\/p>\n

Krishnakumar Vaidyanathan<\/strong><\/p>\n

But Kunal,<\/p>\n

Amit Bakshi<\/strong><\/p>\n

This is going to be a, it’s going to be a good therapy. It’s going to be a big break, breakout therapy. People who are using it are very happy<\/p>\n

Krishnakumar Vaidyanathan<\/strong><\/p>\n

And<\/p>\n

Amit Bakshi<\/strong><\/p>\n

Patient resistance is still there because you know, I think outside voice is, you know, there’s too much voice outside our ecosystem which over a period of time will get little toned down. But so this is one now what will it replace Kunaluk again, I’m sorry I’m repeating but we expect one to one and a half million patients in the in the first year diabetes denominator. This is a very small number.<\/p>\n

Kunal Damesha<\/strong><\/p>\n

So I once<\/p>\n

Amit Bakshi<\/strong><\/p>\n

Again might not find any slowdown particular in any OEDs.<\/p>\n

Kunal Damesha<\/strong><\/p>\n

Right.<\/p>\n

Amit Bakshi<\/strong><\/p>\n

At least this year.<\/p>\n

Kunal Damesha<\/strong><\/p>\n

Now if<\/p>\n

Amit Bakshi<\/strong><\/p>\n

This goes to 2030 of diabetes, which it should go over a period of time then will see some slowdown in other. Okay,<\/p>\n

Kunal Damesha<\/strong><\/p>\n

Sure, sure. I am in the same camp that it would not slow down oads, but yeah, let’s see.<\/p>\n

Amit Bakshi<\/strong><\/p>\n

Yeah, looks like that.<\/p>\n

Kunal Damesha<\/strong><\/p>\n

So it’s a good start.<\/p>\n

Amit Bakshi<\/strong><\/p>\n

It’s a good start. Our brand has taken up well our. We are number one in prescription also.<\/p>\n

Kunal Damesha<\/strong><\/p>\n

And<\/p>\n

Amit Bakshi<\/strong><\/p>\n

The good thing is we started with vials and typically vials were a little Denise in today’s time. General thinking is that it’s a little difficult sell, but once again it is. People who have been selling insulin has come, you know, they have been the real, you know, change for us because we see doctors and patient needs, a lot of support here, a lot of hand holding they need<\/p>\n

Kunal Damesha<\/strong><\/p>\n

And I think<\/p>\n

Amit Bakshi<\/strong><\/p>\n

That is what is looking out. And it seems that our brand name is also liked which is a nice thing to do.<\/p>\n

Kunal Damesha<\/strong><\/p>\n

Sure, sure. Second question on, on our FY27 domestic formulation business guidance growth guidance of around 1.3 times the covered market rate. Right. So what, what are your you know, assumption regarding the growth for. For our covered market for FY27<\/p>\n

Amit Bakshi<\/strong><\/p>\n

It has always been double digit puna. So I don’t think anything changing there and whatever SEMA adds ads. SEMA is a different story. But I think the covered market has always been double digit.<\/p>\n

Kunal Damesha<\/strong><\/p>\n

Sure. So. So basically then at a console level we should expect around mid teens plus kind of top line growth because export we are expecting a high teens growth. Right?<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Yeah, technically. Yes.<\/p>\n

Kunal Damesha<\/strong><\/p>\n

Okay. Okay. And then you know, for the EBITDA margin, you know, I know we have been launching SEMA and there’ll be launch expenses etc, but do you see any upside to the profitability in FY27 from what we have guided any drivers that you see, which you are currently reluctant given all the, you know, geopolitical headwinds, etc, but any diver you can highlight,<\/p>\n

Amit Bakshi<\/strong><\/p>\n

We feel the H1 would be a little, a little bit of a drag, you know, on the gross margins because of you know, all that we know and especially SEMA initially, you know, we have been talking about that would not be a very profitable thing. But in the H2 look, we have a lot of lot of what we have Missed is also because our Bhopal plan didn’t start at time<\/p>\n

Harith Ahamed<\/strong><\/p>\n

And now<\/p>\n

Amit Bakshi<\/strong><\/p>\n

That seems to be, you know, up close there. So the wireless SKUs are all already started. The penfill should start sooner. So for us what will save us in terms of gross margins even if the price relatively remain high is the second half of Bhopan manufacturing<\/p>\n

Unidentified Participant<\/strong><\/p>\n

And<\/p>\n

Amit Bakshi<\/strong><\/p>\n

The incoming of Sunday which is semolutide. So I have, I would not, not say that we can, you know, increase the margins. I would like that to be the way it is put up. But you will see an H1 being softer than an H2. That is what we assume.<\/p>\n

Kunal Damesha<\/strong><\/p>\n

Sure, sure. I have more question. I’ll join back at you. Thank you and all the best.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Participants who wish to ask questions may do so by clicking the raise hand icon at the bottom of your screen and wait for your turn to speak. When prompted you can accept the prompt on your screen, unmute your audio, introduce the firm you represent and ask your questions. Next question comes from the line of Arit Ahmed, please go ahead.<\/p>\n

Harith Ahamed<\/strong><\/p>\n

Hi, this is Harith from Avendus. So I mean sir, you, you touched on the Bhopal facility and, and the expectation around completion of the cartridge line there. So and if I heard correctly we are expecting that to come online by the second half of 2027. So post that. Can we expect a further ramp up in our market share but for RH insulin cartridges from the current level.<\/p>\n

Amit Bakshi<\/strong><\/p>\n

So we are in a good space as far as the insulins are concerned whether it is the cartridges, vials or glar chain. So you would, you would see us ramping, ramping up all along, right? Even when we look at the April data, insulin GLP put together had a 35% growth if I’m not wrong in the IQV numbers. So this is, you know we have just this. The base was set last year and now it will ramp up. So insulins we have been quite confident and that is how it will show up. So that’s about the insulin. Also remember last, Last week around 15 days back we took the first engineering batch of Bio Bio SEMA in the Bhopal plant.<\/p>\n

So we received the PCT and we took the first batch engineering batch. Then we took a PV batch also. And this month end we will be taking two more batches. One is Deglutac Plain and the other is Deglutak Lira. So what happens? You will see a ramp up happening in insulins from the tailwind of the last year and then by the time we enter the next year we will have two more, you know, big markets open for us. So strategically our insulins and analogs and GLP piece is quite well settled both from you know, how they are today and how they and what kind of addition will happen into that basket.<\/p>\n

So all put together insulin has been a, you know we are very happy with insulin and we feel that we could be a, you know, we could really ramp it up. Well<\/p>\n

Harith Ahamed<\/strong><\/p>\n

Got it sir. And then specifically on insulin as part you touched on some regulatory delays there. So I’m just wondering what exactly is the cause of this delay? Because this is a US FDA approved product for a partner by a con. And it’s as part of our expectation for FY27 and just to follow up on the analog insulin part, you know you touched on Deglutec so Deglodec and Lispro. I know these are for a bit later but you know, when can we expect these and you know is do we have a partner for these products?<\/p>\n

Because as far as I understand Biocon doesn’t have these in in their portfolio<\/p>\n

Amit Bakshi<\/strong><\/p>\n

Band my friend, please understand we have been doing the DS ourselves. Now it’s been two years. We have skin to you that you know we have our own DS setup 11 which made the lira glutide, right. Which is now also is doing Romiplastin which is in phase three already we have 50 of phase three patient also have already been done. So all these products, the entire Diplodac family and the recombinant semaph is coming from our own DS and we are further, further investing and expanding the DS capacity. We have already you know put 150, 180 crores this by this time Sachin.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Yeah,<\/p>\n

Amit Bakshi<\/strong><\/p>\n

Right. So we have already put some 150, 180 crores apex which you see also goes up there. So now we have a DS and a DP both line internally. So Romiplastin I told you other than insulin terapelatide is going into phase three. So we’ve already got the approval now for the phase three trial so we will start putting patients together. So the biotech once again I’m reiterating and I’m sorry we were not able to communicate this well Our Biocon platform right from when we entered insulins has been in works.<\/p>\n

And today if you look at our platform we have four commercialized products and four products which are cleared PCT are either in phase one or in phase three.<\/p>\n

Harith Ahamed<\/strong><\/p>\n

Just to confirm as part both the you know plain as part as well as the premix we can expect<\/p>\n

Amit Bakshi<\/strong><\/p>\n

As part is not there with us. As part has to be taken from outside. And you know there were some concerns regarding AS part, not from the quality and regulatory, but there were some other concerns regarding as part. That’s why it gets delayed. So we are launching it in FY27.<\/p>\n

Harith Ahamed<\/strong><\/p>\n

Got it sir. Thanks for taking my question.<\/p>\n

Amit Bakshi<\/strong><\/p>\n

Thank you. Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. The next question comes from the line of Shashank Boyle. Please go ahead. Mr. Shashanko, your line is unmuted. Please go with your question. So there seems to be no response. We have the next question from Nile Parikh.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

From perpetuating. Also my question is regarding the EU GMP this inspection. Can you please deep dive in more details about about the strategy and the remediation? Also, what will be the approx. Quantifiable impact in FY27 in the EUCDMO product segment?<\/p>\n

Krishnakumar Vaidyanathan<\/strong><\/p>\n

Yeah, so answering the first question, we’ve already shared that most of the observations are procedural in nature. So they require remediation in terms of training and ensuring adherence to SOPs. Those initiatives are already underway in full swing. In fact, we’ve already had an audit from an important customer last week and they are pretty satisfied with what is going on. So I would say that the remediation initiatives are well on way and we should get there soon enough to a point where we can invite the agency for a second inspection.<\/p>\n

In terms of impact of the CDMO products, we had outlined to you last quarter that you know, between the CDMO and the base business we can look at a revenue of 550 to 600 crores. That’s what we told you. And now we are guiding you to a 18 to 20 growth rate which is coming only from the existing business. So the Delta, which is, you know, to the tune of 120 to 140 crores, that is a CDMO component which is pretty much intact. But it will go commercial once the facility gets reappoved.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Okay. Okay, thanks a lot.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. The next question comes from Rahul Agarwal. Mr. Rahul, your line is unmuted. Please go ahead.<\/p>\n

Rahul Agrawal<\/strong><\/p>\n

Thanks for the opportunity. In terms of the SEM, how has the market share trended in May in terms of prescriptions? You indicated a 22% prescription prescription market share. Is that for pens and biles combined or. And, and would you have a broad brush split there?<\/p>\n

Krishnakumar Vaidyanathan<\/strong><\/p>\n

What’s that? 22% market share in prescription this pen and vials combined? Yes.<\/p>\n

Amit Bakshi<\/strong><\/p>\n

Yeah, it’s a pen and vial combined. Until this point of time. When we speak, that has actually gone up in May. Our market share has gone up in prescriptions.<\/p>\n

Rahul Agrawal<\/strong><\/p>\n

Got it. And how is this split, Ahmed, between pens versus vials broadly?<\/p>\n

Amit Bakshi<\/strong><\/p>\n

So when, look, while we launched early on by, you know, by the time the LOE was instituted and then it took some time for us to launch the pen. Pen was launched mid April and when we have one sku. So there was a little bit of a drag there. So right now in my prescription I am reporting. Let me just do a math. 104, 70 and 40. So almost 60% coming from vials and 40% coming from pens. That’s how the split is in prescription. And the units are a little more units. We expect units to be more like 50, 50 or 60, 40 in that zone.<\/p>\n

Rahul Agrawal<\/strong><\/p>\n

Got it, that’s helpful. And on the EU CDMO bit, kk, just following up on the last participant’s question, you mentioned that there was a customer audit last week and that that kind of went well. So overall in the long term you guys have indicated a 800 to 1000 crore UTM opportunity. How do you do you see that being affected significantly because of these regulatory issues and how have the discussions with the customers been? Is that just a postponement or do you expect meaningful impact there?<\/p>\n

Krishnakumar Vaidyanathan<\/strong><\/p>\n

Yeah, so valid concern and happy to report that there is no impact on that book. All the key items that were part of the book still continue to be part of the book and the timeline impact is only in respect of this one product which had to go commercial in quarter one, which we are ready for and which is what is making this revenue dent in the current financial. Barring that we don’t see any long term impact.<\/p>\n

Rahul Agrawal<\/strong><\/p>\n

Got it. And this facility that we had this impact for, I’m assuming is the old Swiss facility. And would we also be triggering a separate approval for the ARIS facility that we had put up CAPEX for or will this now all be part of the combined facility and has the same approval process?<\/p>\n

Krishnakumar Vaidyanathan<\/strong><\/p>\n

So the the EU inspection was conducted for the two injectable units which are under Swiss parent rules. Right. And the ERIS unit is a oral solids and dermatology unit. So that unit did not get inspected in March. The only two units that got inspected were the two units of Swiss which have been carrying a EU approval since the year 2020.<\/p>\n

Rahul Agrawal<\/strong><\/p>\n

Got it, got it, got it. And by when do you expect to trigger the reinspection and remediation? KK on this?<\/p>\n

Krishnakumar Vaidyanathan<\/strong><\/p>\n

So the trigger will be soon enough because we have to do the Kaapa which is a corrective action, preventive action plan and submit it to the agency which I see happening soon enough. What we are unable to tell you though is you know when we can expect the agency to come back again because you know that is you know subject matter of a calendaring, scheduling things.<\/p>\n

Rahul Agrawal<\/strong><\/p>\n

Got it. Thank you so much and good luck.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. The next question comes from the line of Tushar Manudani. Mr. Dush Mani, you can go with your question.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Yeah. Am I audible?<\/p>\n

Operator<\/strong><\/p>\n

Yes sir, you are.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Thank. Thanks for the opportunity. Sir, just on this EU reinspection and the growth guidance just a clarification again here like 18 to 20 revenue growth guidance is considering CDMO EU facility clearance and then incremental business from that or without that<\/p>\n

Krishnakumar Vaidyanathan<\/strong><\/p>\n

Without.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

And how much was that impact of this EUCDMO business which has sort of postponed because of the reinspection?<\/p>\n

Krishnakumar Vaidyanathan<\/strong><\/p>\n

As explained earlier we had tensed in about 120 to 140 crores of revenue coming in from UCD amount which is the piece that has been postponed.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Just as a clarification has the customer utilized maybe like as a 2 supplier in terms of this. So that and which is why probably that business is lost or that business is postone<\/p>\n

Krishnakumar Vaidyanathan<\/strong><\/p>\n

That business is postponed. It is not lost because fortunately for us this product is in short short supply in the target markets. So the customer is working alongside us to see how the remediation and how the reapproval can happen asap.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

And is this the product which triggered this inspection or some other product triggered the inspection?<\/p>\n

Krishnakumar Vaidyanathan<\/strong><\/p>\n

This was not triggered Tushar. This two facilities have been approved since 2020. As we’ve been telling you in the past EU comes for inspection every two years. The OSD facilities get a three year approval and injectable facilities get a two year approval. So this was part of the normal two year inspection cycle.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Understood. And sir, if you could also sort of break down the DBF growth therapy wise maybe for FY26 or for Q4. FY26,<\/p>\n

Krishnakumar Vaidyanathan<\/strong><\/p>\n

What is that sir? DBF growth therapy wise. So<\/p>\n

Amit Bakshi<\/strong><\/p>\n

Tushad you can find that in the data now but largely I tell you the, the whole drag is coming from the OID which I explained OEDS was you know a very small 2, 3% growth and that is where the whole drag is coming. Other than that insulin was right up front there. Cardiology we have caught up, you know it’s like almost at the market now traveled quite a distance in the last year dermatology we had been ahead. So the, the drag which you see is Largely coming from oeds.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

And sir, if you could share Sema, let’s, you have already shared, let’s say the market share if you could at least in the month of April how much sales we made that just to get an idea in terms of what the industry size is maybe for. Of course. Yeah,<\/p>\n

Amit Bakshi<\/strong><\/p>\n

Yeah, yeah, yeah. So Tushar, April our reflection was 4 crores which is like more or less which we, we are there. So we started at 4 crores and it this is going to be a month on month build up for the entire year. That’s how this new market been unveiled.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

And the way this market has built up is that in line with in terms of the industry size for example 30 crore a month approximately in April. Effectively taking the market size, of course it’s scaling up so can’t annualize it. But do you think the industry is scaling up in line with your expectation,<\/p>\n

Amit Bakshi<\/strong><\/p>\n

Tusha? Very early, very early. Just, just two, three more months. We look patient onboarding is not bad, right. But you know these are all numbers which we divide and you know there’s an assumption which we made a lot of stuff sits in the, you know, in the shelf also. So I don’t really believe that number of 1.5 lakhs. 2 lakhs. What we can tell you in the Healthplics data which covers you know, you know a small part of the number, this decent part of the Doctors that reports around 25000 to 27000 patients.<\/p>\n

Right. Real data monthly. So 25000 monthly from Healthplics cohort is not. Is a good start. But the large physician community is still not kind of, you know, it’s not, still not there. And that happens every time there’s a new drug, there’s a new molecule which is launched. But this will be a good market. We have, we are quite confident and it’s a very good drug. Also<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Answer just this 4 crore in April has by, by your judgment what that number is in month of May.<\/p>\n

Krishnakumar Vaidyanathan<\/strong><\/p>\n

Sorry, sorry. What’s that?<\/p>\n

Amit Bakshi<\/strong><\/p>\n

Huh?<\/p>\n

Krishnakumar Vaidyanathan<\/strong><\/p>\n

Four was in April. How much will be. Yeah,<\/p>\n

Amit Bakshi<\/strong><\/p>\n

So we expect around 20% movement between April and May. Four to five. Yeah. On a secondary basis. Right, Got<\/p>\n

Unidentified Participant<\/strong><\/p>\n

It, Got it. Thanks.<\/p>\n

Amit Bakshi<\/strong><\/p>\n

Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Participants who wish to ask questions may do so by clicking the raison icon at the bottom of your screen and wait for your turn to speak. Next we have a follow up question from Kunal Damesha. Please go ahead.<\/p>\n

Kunal Damesha<\/strong><\/p>\n

Hi. Thanks for the opportunity. Again just on the Semagenic market as the competitive intensity which you are witnessing is, is in line with, you know, what you had expected or is it better and then what is the impact on potential pricing in that market? Let’s say, you know, one year forward, do we expect prices to start increasing from here or do we still see that there will be continuous pressure on keeping our prices, you know, very affordable in this segment?<\/p>\n

Amit Bakshi<\/strong><\/p>\n

Contrary to what everybody thought, the competition is not very fragmented here. We don’t see, you know, as, you know, we read in a lot of reports, media, 100 people, 50 people. But you know, because this is, this is a little bit of a complex selling, I, we know, I don’t find this going to that level. I think this is the money, this is the brand where very initially you will see the top 5, top 6 gaining 65, 70, 75 market share share.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

And I<\/p>\n

Amit Bakshi<\/strong><\/p>\n

Don’t think that would change, you know, in the near future also because of the supply chain, because of the complexity and all those things. So contrary to what, what, you know, what was written all over, I believe that this is going to be a 5, 6 player game and you will see a 13 to 15% market share person being there as number one. So this is what it looks like today. Look, prices going up in India is something which I haven’t kind of, you know, seen. We only talk about prices going down and then do we make a profitable, you know, will it be a profitable sale?<\/p>\n

So we actually priced our product 30% lower than, you know, most of the companies generally. If you look at largely everybody is 4200 bucks for a 2 milligram pen, we are at 3200 bucks. So we already taken a little bit of a price cut because we feel that this might be little more sustainable. So instead of price rides, I would, I see some price correction happening over the next year and then it gets stable.<\/p>\n

Kunal Damesha<\/strong><\/p>\n

Sure, sure. And then let’s say once our capacity kicks in for pens, etc. Right. Do you see that, you know, one scaled up, this could be as good as a profit generator as our current business<\/p>\n

Amit Bakshi<\/strong><\/p>\n

Look at an EBITDA level, there is a, there is a good possibility at a gross margin level. No. So, you know, will we ever see it getting to 80 gross margin? I don’t think ever.<\/p>\n

Kunal Damesha<\/strong><\/p>\n

But<\/p>\n

Amit Bakshi<\/strong><\/p>\n

Can that be, you know, because it will be not as competitive, blah, blah, blah. Can it give us the same ebitda? I am hopeful for that.<\/p>\n

Kunal Damesha<\/strong><\/p>\n

Okay. Okay, sure. And, and then on the, you know, the, the European, you know, this, the entire plant issue, you know, generally, you know, I have not seen any Company struggling with the eugmp. Right. So what is it that they found out? Even if those were procedural? My view is that EU GMP is generally very, you know, they, they are very open to dialogue and understanding your perspective. Right. So what actually transpired in a way that, you know, we, we, we are basically left with the, you know, issue and while we continue to say it’s procedural but it would be great if you could highlight, you know, couple of key observation that they have highlighted and you know, what’s the corrective plan?<\/p>\n

We kind of employed any consultancy agency to kind of, you know, carry out that plan and will it require some form of infrastructure changes in, in the plant or you know, maybe a shutdown of particular lines to carry out remediation plan? Those details would be helpful.<\/p>\n

Amit Bakshi<\/strong><\/p>\n

So Kunal, look, when we talk, when we told you it’s all procedural, right. And you know, KK will kind of, you know, enhance that. What, what I remember seeing that there is no qa, no qc, no data integrity issue. Now what I remember reading is the flow of, you know, people movement. Right. The SOPs follow SOP is for the movement especially around the microbial, you know, product, the anti, antimicrobials<\/p>\n

Kunal Damesha<\/strong><\/p>\n

So<\/p>\n

Amit Bakshi<\/strong><\/p>\n

Largely in that zone. So we have discussed this. So I can tell you that we do not expect any capex for remedial. It is more about procedural. So agency hiring training is already done. So that is what I know. Kk, if I’m missing on something, please.<\/p>\n

Krishnakumar Vaidyanathan<\/strong><\/p>\n

Yeah, I mean that, that sums up the situation very well. And since you wanted a little more color, Kunal A. I beg to differ. When you said that you started off saying EU usually doesn’t disqualify facilities because there is enough press out there in terms of larger companies who are also facing similar issues. But be that as it may, in our situation, we are not looking at any capex. I’ll. I’ll be very clear about that. So we are not looking at shutting down any line. We don’t have the liberty of shutting down any line.<\/p>\n

All lines are operating in full swing. Right. The only situation that we are dealing with right now is the ability to ship product to the eu.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

So<\/p>\n

Krishnakumar Vaidyanathan<\/strong><\/p>\n

Our customers in the existing markets are still being serviced from those very lines. So there is no question of any shutdowns being taken. So the plant is an operation as usual. Alongside we are investing time and effort in a. In some cases where, for example, you know, this is not a classified area, but they want it to be a classified area. That is one example of an observation of the observations are on, you know, operator behavior. You know, simple things like they’re standing too close to each other.<\/p>\n

They’re not behaving in a sterile area in the way they are supposed to behave. So that has to be addressed through training.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

And in<\/p>\n

Krishnakumar Vaidyanathan<\/strong><\/p>\n

The cases where we do have to install some hardware, you know, we are talking of stuff like pass boxes to be honest, for RM dispensing. So that is the level at which students are. So it is not something that is any cause for concern, neither for us nor for you.<\/p>\n

Kunal Damesha<\/strong><\/p>\n

Sure. And, and, and lastly, the way I understand for our EBITDA margin guidance for FY27 is more or less would be in the similar lines to FY26. Is it the correct way to understand and H1 being lower than H2, right?<\/p>\n

Krishnakumar Vaidyanathan<\/strong><\/p>\n

Yes. Kunal 37dB up and 36% consolidated for the same since in 27. Yeah.<\/p>\n

Amit Bakshi<\/strong><\/p>\n

Even if, even if there is no equity attached to that still we maintain 36, 37% margin.<\/p>\n

Kunal Damesha<\/strong><\/p>\n

Okay, perfect. Thank you. And all the best.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. The next question comes from the line of Bharat Shah.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Yeah, yeah, hi, this is Bharat Shah from BCS Capital Ideas Ltd. So my first question is about overall capital efficiency and the capital intensity of the business. So this is not for this quarter or this year, but when I see it over the period of time, Let us see if I think about last four years our turnover which was four years back, little less than 1700 crores, about 1685 odd crores. He is now touched about little over 3100 crores. The capital employed in terms of the net worth and only date I’m including, I’m not including any other form of liability but net worth in the date which was 3100 crore.<\/p>\n

Then in the current year I. I don’t have the final figures of the net worth and all that, but on ballpark basis the total of network and date would be 5,600. And throughout this period almost the capital behind capital deployed of net worth and date is little less than two times the turnover. Therefore, my question is about capital efficiency. While your margins are healthy at 36 37%. But those kind of margins cannot forever be assumed at least even if it is maintained any kind of net of depreciation.<\/p>\n

If I see depreciation and amortization about 28 odd percent margins, that means if the capital takes two times the turn, I mean two times the capital of the turnover, then I’m Forever stuck in 14, 15% return on capital employed bracket. Is that a realistic Way to describe the business or this is current situation but hopefully it will improve<\/p>\n

Krishnakumar Vaidyanathan<\/strong><\/p>\n

It is current situation. Our return on capital employed for the year was at 15% and adjusted return on capital which is excluding the impact of M a related amortization is 20%. So that is where the FY26 numbers stand. And as we have called out number of times this is a transient phenomenon because in financial year 25 we took the impact of the highest ever amortization. Our asset base increased by six times as you’ve currently pointed out in a very short span of time. But the gains from this expansion have started coming in from FY26 onwards.<\/p>\n

So the EPS acceleration is the first thing that you see come through where for a 10% growth in EBITDA you saw 35% growth in EPS which will be sustained in the next three years. So over an FY26 to FY28 period we expect the return on capital employed to go from 15% to somewhere in the 23 to 25% range. Which is what you know we have called out and which is what we expect to happen.<\/p>\n

Amit Bakshi<\/strong><\/p>\n

But he also talked about capital expenditure,<\/p>\n

Krishnakumar Vaidyanathan<\/strong><\/p>\n

The capital base.<\/p>\n

Amit Bakshi<\/strong><\/p>\n

So whereby also there is something which you know, which we, which we have been doing since the last three, four years because we decided to move up into a little bit of a complex manufacturing, little bit tech based manufacturing and these things generally have a, you know, have a time gestation time of between three to four years. So if you look at our investment thesis and I’m not talking about acquisition and amortization, I’m talking about the capital which we are employing in hard assets. So if you look at how we have been thinking through it that we have been putting money in a very, you know, in a very strategic manner from our side that is to develop a large biotech clay.<\/p>\n

And for that biotech clay itself we would have invested around 160, 180 crore rupees on our DS and another Bhopal 250 crores. So 250 crores in Bhopal which is a fill and finish site which has a very large capacity once it is approved and done. Now nothing has started coming out from both of these. So Bharatbhai, we feel that once our Bhopal is ready it will be one of its kind from a scale perspective and that will give us a very good kick up in margins and will open up a lot of new markets for us, you know, including new products.<\/p>\n

And we also have made a MAP facility there which we think is the future. But we have been delayed by almost a year or a year and a half by putting this together. So our expenditure has been very strategic in nature. And the second big expenditure which we have put is in a, in another plant for Swiss parentals which should be completed by this. Huh.<\/p>\n

Krishnakumar Vaidyanathan<\/strong><\/p>\n

Looking at commissioning in April, commissioning<\/p>\n

Amit Bakshi<\/strong><\/p>\n

In April, which will be 2x of what current capacities are. So then what happens? The parental capacities increases 2x and the biotech capacities is like 80 million cart and you know, similar vials and then lifelies and the other thing. So once this is commissioned and whereby we also see a lot of traction when it comes to insulin, not only for India but also, you know, shipping them outside once the regulatory things are in place. So that has been the direction of our capital allocation<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Right now. I appreciate that. I definitely believe that the direction which we take and what we choose to buy into is quite strategic. That reflects in the kind of strong margins that you always earn. But ultimately margin is only one part of the capital efficiency. Ultimately how much capital is turned over also has a very deep impact on the capital efficiency. And in your case, while hard assets behind biotech and all that, maybe 170, 180 crore or birth acquisition of the brand or the intangibles is the real large asset play that you have got into because that’s where the amortization comes by.<\/p>\n

So I while Krishna Kumar mentioned that without amortization written on, capital employed is higher. But I would respectfully submit that we can’t do that because the amortization stems from intangible assets that we have acquired and the benefit of that is reflected in the turnover and profits and therefore amortization is very much like any other hard asset that is there. So KK, just to be clear, that 15% ROC after charging amortization is what you expect to climb to 23 to 25% in three years, right?<\/p>\n

Krishnakumar Vaidyanathan<\/strong><\/p>\n

Yes, that is what I meant. I take your point that, you know, adjusted ROC is one thing. The accounting ROC is 15% as is the return on equity. And this is the number that we expect to get to 23 to 25% once everything starts firing the way we expect it to.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Yeah, because the point about accelerated EPS is well taken, but accelerated EPCA is EPS is a function of operating leverage and financial leverage. So I’m not really going into that. The core capital efficiency is critical to drive long term sustainable capability to invest and grow the business. It was from that perspective, I take it so that. Sure. Thank you. And last question, just one last question. Very quick one. What will be the ETR KK in the current year? 26, 27. So it is 21% for this year effective<\/p>\n

Krishnakumar Vaidyanathan<\/strong><\/p>\n

Tax rate.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Yes. Okay. 21% for the 26, 27 year. Right. FY 26, it is 21%. 2%.<\/p>\n

Krishnakumar Vaidyanathan<\/strong><\/p>\n

For. For FY 26, the effective book tax rate was 22%. It’s also part of the presentation and we expect this to be 21% zone for financial year 27.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Okay, perfect, perfect. Thank you so much and all the very best.<\/p>\n

Krishnakumar Vaidyanathan<\/strong><\/p>\n

Thank you.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. The last question comes from Mr. Mohammed Patil.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Yeah, hi, I. I hope I’m audible.<\/p>\n

Operator<\/strong><\/p>\n

Yes.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Yeah, this is Mohammed Petal from Edelweiss Public Alternatives. So I have a few questions. International business, I wanted.<\/p>\n

Operator<\/strong><\/p>\n

Mr. Mohammed, you’re not audible.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

I. International business, Mama, they can’t hear you very clearly. I will request you to take this offline with me. Am I audible now?<\/p>\n

Krishnakumar Vaidyanathan<\/strong><\/p>\n

Yeah,<\/p>\n

Amit Bakshi<\/strong><\/p>\n

Yeah, you’re audible. Yes.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

I’m asking what’s the geographical mix for the international business for FY26?<\/p>\n

Krishnakumar Vaidyanathan<\/strong><\/p>\n

Sorry, what is more. So our geographic mix has been quite stable in the last two years. We typically get about 30% from Africa, about 30% from Asia, about 25 from LATAM, and the rest of it is all dispersed. So this year we expect the Latam component to grow faster because there are a lot more new product approvals. But broadly, these three will continue to be our key geographies.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Okay. And you talked about supply chain disruption in Q4 for the international business. Is it going to impact H1 also?<\/p>\n

Krishnakumar Vaidyanathan<\/strong><\/p>\n

We don’t, you know, expect it to be of a similar magnitude. I think we are all following the same press. So, you know, unless we have any difference of information, Q4 was way worse than what it is looking like today. So we are hoping that we’ll be able to recoup at least some of that in Q1. April. April<\/p>\n

Amit Bakshi<\/strong><\/p>\n

Was okay.<\/p>\n

Krishnakumar Vaidyanathan<\/strong><\/p>\n

It’s better than, you know, it’s way better than what was in March. So.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Okay. And on the EU CDMO, should we expect some revenues in FY27 or we should expect major revenues in FY28 in base case,<\/p>\n

Krishnakumar Vaidyanathan<\/strong><\/p>\n

I mean, your guess is as good as mine. We are, I am not counting any revenue there, which is why we’ve given a guidance of 18 to 20% growth. So anything that comes from EUCDMO, let’s take it as an upside.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Okay. One last question on the DBF business. So if I go therapy, by therapy, do we expect to outperform majority of our therapy. By therapy in FY27.<\/p>\n

Krishnakumar Vaidyanathan<\/strong><\/p>\n

Today, I mean, AMIT already spoke in detail about the, you know, four major therapies, which is insulins, cardiovascular, derma and oad. So insulin are already outperforming and that’s expected to continue. Cbd, we have caught up on a quarter on quarter basis. So by quarter four, we are almost on par with the covered market. And with, you know, some good product launches like Isaac Sereno, we expect that should fire well. So that leaves the OAD piece where we’ll need a little more, you know, bit of time to catch up.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Due to time constraints, that would be the last question for the day. I would now like to hand over the conference to Mr. V. Krishna Kumar for the closing comments.<\/p>\n

Amit Bakshi<\/strong><\/p>\n

Nothing. Nothing from our side. Thank you for, you know, being here. And if there’s anything left out because we’re running out of time, Kriti and KK will take it off. Right. Thank you so much.<\/p>\n

Operator<\/strong><\/p>\n

Thank you very much, sir. And thank you, members of the management. Ladies and gentlemen, on behalf of ERIS Life Sciences Limited, that concludes this conference. Thank you for joining us and you may now exit the meeting.<\/p>\n","protected":false},"excerpt":{"rendered":"

Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon. Eris Lifesciences Ltd (NSE: ERIS) Q4 2026 Earnings Call dated May. 20, 2026 Corporate Participants: Krishnakumar Vaidyanathan \u2014 Executive Director & Chief Operating Officer Amit Bakshi \u2014 Chairman & Managing Director Analysts: Harith Ahamed \u2014 […]<\/p>\n","protected":false},"author":2377,"featured_media":147581,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[6349],"tags":[10169,9175,9104,9092,14492,10089],"class_list":["post-183613","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-transcripts","tag-earnings","tag-earnings-call","tag-earnings-conference","tag-earnings-transcripts","tag-financial-results","tag-quarterly-earnings"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/Transcript-thumbnail.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":172502,"url":"https:\/\/alphastreet.com\/india\/eris-lifesciences-q2-fy26-earnings-results\/","url_meta":{"origin":183613,"position":0},"title":"ERIS Lifesciences Q2 FY26 Earnings Results","author":"Divyansh_Kasana","date":"November 19, 2025","format":false,"excerpt":"ERIS Lifesciences Ltd, engaged in the manufacturing and marketing of pharmaceutical products, reported robust financial results for Q2FY26. 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Presenting below are its Q1 FY26 Earnings Results. Q1 FY26 Earnings Results Revenue: \u20b9773 crore, up 7.36% year-on-year (YoY) from \u20b9720 crore in Q1 FY25. Total Expenses: \u20b9616 crore, up 1.65% YoY from \u20b9606 crore. 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