Ipca Laboratories Ltd. — Call Transcript 2025

Nov 17, 2025

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THRU ONLINE FILING

November 17, 2025

BSE Ltd. Phiroze Jeejeebhoy Towers Dalal Street Mumbai 400 023 Scrip Code – 524494

National Stock Exchange India Limited, Exchange Plaza, C-1, Block-G, Bandra Kurla Complex, Bandra – (East). Mumbai-400051. Scrip Code : IPCALAB

Dear Sirs,

Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find transcript of our Conference Call which was held on Thursday, 13[th] November, 2025 to discuss the Company’s Q2 FY26 earnings and business update.

Thanking you

Yours faithfully For Ipca Laboratories Limited

Digitally signed by HARISH PANDURANG KAMATH DN: c=IN, postalCode=400063, st=MAHARASHTRA, street=4204, HARISH TOWER B, OBEROI ESQUIRE ,YASHODHAM, MOHAN GOKHALE ROAD ,MUMBAI SUBURBAN,GOREGAON (EAST) ,400063, l=MUMBAI SUBURBAN, o=Personal, serialNumber=72050fb9fadcbc5de6404685117b8355792f5784c76 PANDURANG 17d9c4cae2a3887d6b809, pseudonym=cfedd4e63f0643129a1780871ed0cb04, 2.5.4.20=3e5648a57390d9262997da3de9051643bfb87e352b11140 KAMATH 2af42d207e52e25c6, email=HARISH.KAMATH@IPCA.COM, cn=HARISH PANDURANG KAMATH Date: 2025.11.17 12:57:27 +05'30'

Harish P. Kamath Corporate Counsel & Company Secretary

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“Ipc a Laboratories Limited Q2 FY '26 Earnings Conference Call” N ovember 13, 2025

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MANAGEMENT: MR. A.K. JAIN – MANAGING DIRECTOR – IPCA LABORATORIES LIMITED MR. HARISH KAMATH – CORPORATE COUNSEL AND COMPANY SECRETARY – IPCA LABORATORIES LIMITED

MODERATOR: MR. NITIN AGARWAL – DAM CAPITAL ADVISORS LIMITED

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Ipca Lab o ratories Limited No v ember 13, 2025

Moderator:

Ladies and g e ntlemen, good day, and welcome to Ipca Laboratories Earnin g s Conference Call Q2 FY '26 h o sted by DAM Capital. As a reminder, all participant lines wi l l be in listen-only mode, and t h ere will be an opportunity for you to ask questions afte r the presentation concludes. S h ould you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this c o nference is being recorded.

I now hand o v er the call to Mr. Nitin Agarwal. Thank you, and over to you, sir.

Nitin Agarwal:

Thank you. H i, good afternoon, everyone, and a very warm welcome to Ipca Labs Q2 FY '26 Earnings Ca l l hosted by DAM Capital Advisors Limited. On the cal l today, we have representing Ipca Lab management: Mr. A.K. Jain, Managing Director ; and Mr. Harish Kamath, Cor p orate Counsel and Company Secretary.

I will hand o v er the call to Mr. Jain to make the opening comments, and we w ill open the floor for questions subsequently. Please go ahead, sir.

A.K. Jain:

Thank you. T hanks, Nitin, and DAM Capital for organizing this call. Today's hearing call and discussions a nd answer given may include some forward-looking statem e nts based on our current busi n ess expectations. This must be viewed in conjunction with risks that pharmaceutical business faces. Our actual financial performance may di f fer from what is projected an d perceived. You may use your own judgment on the informatio n given during the call.

Domestic for m ulation business for Q2 FY '26 has delivered a growth of a round 8% for the quarter. Busi n ess of the quarter has impacted due to GST rate rationalizations, rate structure correction m a de during the month of September 2025. And we have seen t hat subsequent to that in Octob e r month, we had a very good business recovering on domestic m arket.

Ipca's MAT S eptember 2025, rank continued to remain around 16 as per IQ V IA. Compared to MAT-Septe m ber 2024, market share of Ipca has improved from 2.3% t o 2.8% in MAT September 2 0 25. Both on acute and chronic segment, we have outpaced the I PM as per IQVIA data for the q uarter. Overall market growth in this period has been around 7 .8% and Ipca has grown in Q2 a round 11.6%.

On acute sid e , market has grown by around 6.2%. Ipca's growth was around 8.2%. On chronic side, market has grown by around 10.3% and Ipca growth tracked by IPI is around 14.2%. Both chronic and acute business both has delivered better growth.

And overall s hare of chronic business in overall Ipca business has moved u p from 34% in last quarter to ar o und 35% now. For market, it is around 40%. So we are c ontinuously now increasing ou r business share from chronic business now.

On export fo r mulation business for the quarter is around INR493 crores a s against INR541 crores in last financial year. That has declined by around -- almost around 9 % for the quarter. And for H1, i t is around INR941 crores as against INR937 crores in H1 '2 5 , almost flat. But

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Ipca Lab o ratories Limited No v ember 13, 2025

we are exp e cting a business growth of around almost around 8% t o 9% on generic formulations i n H2 '26.

On API fro n t, for API business, Q2 FY '26 has delivered a growth of a round 28% from INR319 cror e s to around INR408 crores on back of better business from Europe and Latin America. Ov e rall API business of current financial year is expected to gr o w around 14% to 15%.

For Q2 FY ' 2 6, R&D spend has increased to around 3.91% of the turnover from 2.7% for Q2 FY '25. Hig h er R&D spend of around 4% of turnover will continue in t h e for the current financial yea r .

On margin fr o nt, our stand-alone EBITDA margin has improved to around 2 5.46% for Q2 FY '26 as agains t 22.89% in Q2 FY '25, an improvement of almost around 2. 5 7%. Consolidated EBITDA ma r gin for Q2 FY '26 is at around 21.68% as against 19.1% fo r Q2 FY '25. That consolidated E BITDA margin for the quarter has also improved by almost ar o und 2.58%.

And looking a t overall the margin improvements in the Q2 of the current fin a ncial year, we see that from ou r guidance of around 20% consolidated margin, the margin a re expected to be better by alm o st around 1% in the second half, and that improvement will be there.

Having given the broad numbers, now I request participants to ask the questi o ns.

Moderator:

Saion Mukherjee:

A.K. Jain:

Thank you. W e will now begin the question and answer session. First questi o n is from the line of Saion Mu k herjee from Nomura Securities.

I just wanted to know, sir, your comments on GST impact. If you can quant i fy and also if you can throw so m e light around various therapy dynamics in India, how those a re growing in the secondary m a rket, please?

Overall, let's say, the pain is our biggest segment that continue to grow ar o und 10% to 11% kind of grow t h is there on that segment. In Q2, we have around 10% growt h . And for H1 '26, we have 11% growth.

As far as car d iovascular segment is concerned, as we have talked earlier th a t in first half -- in the first qua r ter of current year, we had a major restructuring in cardi o vascular business because we h ave added two more divisions and that the first quarter busi n ess was impacted because of th a t.

But in secon d quarter, we see good recovery around -- this business has gro w n by around 11%. And for consolidated for H1, the growth is around 10% on cardiovascular business. Overall, antimalarials has seen decline in this quarter also and the H1 '26. This quar t er, it has declined by around 8 % and overall decline is around 2%. Antibacterial in this qu a rter, the business growth was a r ound 4%.

Overall for t h e half year, it is around 5%. CNS segment, we had around 1 8 % kind of growth and for H1, i t is around 14%. Cough and cold, there is a recovery now. And this quarter, it has

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grown by al m ost around 17% and for first half, it has grown by around 18 % . Derma business in this quarte r has grown by around 11%, and urology business was also ar o und 11%. This is in spite of -- t here is an impact in the month of September because that gro w th was very, very low for us.

Saion Mukherjee:

A.K. Jain:

Saion Mukherjee:

A.K. Jain:

So, sir, what was the impact? And what is your guidance for the full yea r for India growth now?

Let's say, overall, our guidance was around 10% to 11%. And broadly, we w i ll be in that line.

Okay. And t h e other question I would like to understand from you is on U n ichem. So if you can just take us through what we should expect? You talked about syner g ies before, part is realized, part will be. So if you can talk about the time lines and the quantu m there? And what is your guida n ce on EBITDA margin for Unichem this year or next year, ple a se?

Let's say, as far as Unichem is concerned, let's say, we were talking ab o ut whatever cost reductions w e need to work to do as far as their shipping, logistics and that was already done. Their energy c ost reductions was already done. In last financial year itself, that was done.

As far as th e business issues are concerned, number one was that we s h ould extend their product to t h e various markets. So that work has started. And I think a round 12 product dossiers are f iled in European market and other markets, that filing has sta r ted. So that work and after this filing, probably approval may take around 1 year to 1.5 years. That's the time. And then we ' ll start extending their product businesses to the other marke t s. So that work is going on.

As far as qua l ifying whatever API they are buying from outside and there th e Ipca is one of the major source . That qualification applications are already say data are gene r ated and fed with regulatory au t horities once, let's say, that's clear. So far, no sourcing has sta r ted from Ipca. So once that ap p rovals come, so that there is some -- maybe around six mont h s to nine months kind of delay may happen.

But thereafte r , probably from next financial year, some of our major API s , we should start supplying to t hem after the regulatory approvals are there. So that's the overall journey, which is currently h a ppening.

As far as Un i chem margins are concerned, first quarter was largely impacte d because of some restructuring, which has happened in Europe because one of their facil i ty manufacturing facilities whi c h was there in Europe, there we had handshake with people, a n d we were closing that facility. T hat business is transferred to their Baddi.

So overall, t h ey were incurring around EUR3.5 million to EUR4 millio n every year, the expenditure. S o that expenditure will be cut now. And that manufacturing a nd all the sources and all appro v als has received. And I think the normal business has already started from their Baddi facilit y , which has all those kind of approvals and all customers a nd all regulatory approvals an d everything is in place.

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So Ireland fa c ility is being -- getting closed down. And so these are the ma j or changes which were there. A nd I think that cost has settled their first quarter account.

On European Union kind of penalties and all that payments were made. And I think since euro has moved a dversely, so that provision was also there in the first qu a rter of exchange difference of around INR10 crores to INR12 crores, which has also impact e d the first quarter. Second quart e r was normal.

They had a g ood business growth in U.S. around 12%, and their European business has also done well. A nd therefore, I think over INR60 crores kind of EBITDA m argins they have, which is arou n d 11% or so of the second quarter.

So more imp r ovements will start coming in once, let's say, dossier filing, w h ich has happened and there the i r approvals start coming in from the various markets and we st a rt extending their product to th e other markets. So that advantage will still going to take some m ore time.

So, I think o v erall, their business margins are expected to remain around w hat is in line with the second q u arter, but larger improvement may take place only after the v arious approvals, what we are e xpecting.

Saion Mukherjee:

A.K. Jain:

Moderator:

Aanchal:

A.K. Jain:

And then, sir , we could get to what, 15%, 20% kind of levels? What woul d be after all these approvals an d benefits?

The business also has to mature because business starts, so it will take ti m e. So, let's say, I would say it m ay -- for that margins to go up, it may be around 1.5 to 2 years.

The next que s tion is from the line of Aanchal from Lotus Wealth.

Yes. So I ju s t wanted some clarity around the synergies from Unichem. S o we see that the R&D has inc r eased in this quarter. But say, going ahead, if, for example, the R&D from Ipca is around INR2 0 0 crores, while the R&D from Unichem is around INR100 c rores. This at the consol level c omes to around INR300 crores, correct? So going ahead in the next year, can we say that this expense from INR300 crores can come to around INR150 c rores or INR200 crores?

No, that exp e nditure reduction will not happen because Unichem has to d o a lot of work in terms of, let's say, extending their dossier to the various markets. And a lot o f places, there are repeat bioeq u ivalent study need to be done for filing in other markets li k e Australia, New Zealand, Can a da, all those markets, Europe filing and all -- and so those bi o equivalent studies and all are r e quired, then somewhere trade dress needs to be matched b e cause somewhere colors of the t ablet may be different and other size shapes are different.

So a lot of t h ose kind of work or incremental work need to be done in o rder to align the product portf o lio and getting those kind of approvals. So, in fact, those expenditures are going to remain. W h at we have eliminated is that both the teams will not work on a common product. So there will be no duplication. But as far as work is concerned, in fact, th a t cost has already

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increased an d will keep on remain at that level because a lot of incrementa l work needs to be done in order to get better certification of their product range from other mar k ets.

Aanchal:	Okay, sir. An d also around the ANDA synergies. So say, if Unichem already has an approved
	ANDA, can Ip ca use the same molecule ANDA and gain any synergy around here?
A.K. Jain:	Let's say, Uni chem is marketing all Ipca products. So Unichem, if it is pro ducing, they have
	ANDA, they will continue to produce. Ipca will not disturb that part. Onl y thing what will
	happen that fu ture development, it will all depend on whether Unichem--ifU nichem has API,
	Unichem will develop that product.
	If Ipca has API, Ipca will develop the product. There will not be a common product
	development at both the places. But both the team will continue to work on new product
	development. So both the teams will be working on their respective range, ye s.
Aanchal:	Okay, sir. Un derstood. And just one last thing. I just wanted to understand your pipeline for
	the 505(b)(2) in Ipca as well as for Unichem?
A.K. Jain:	We don't have any pipeline of that nature.
Moderator:	The next ques tion is from the line of Tushar from Motilal Oswal Financial Se rvices.
Tushar:	Sir, just on th e generics exports, while you have guided for 8% to 9% gro wth in the second
	half, what is it that will drive this? Do we having certain product appro vals or traction?
	Because first half has been pretty flat for generics?
A.K. Jain:	First half, bas ically, it was basically on account of one product because in the market, there
	was a good am ount of higher inventories were there, and there was no prod uction of that. So,
	otherwise, the European business has-- if I look from the ranges point of vie w and all that has
	done well.
	And overall, the kind of orders we have and kind of whatever interactionw ith customer and
	our business expectations suggest that we should be able to have around8 % to 9% kind of
	growth on gen erics in H2 '26, yes.
Tushar:	Got it. And si milarly, on the branded export side as well, I mean, the first ha lf, again has been
	pretty soft?
A.K. Jain:	First quarter, we had a good growth. I think it's only second quarter andq uarter-to-quarter,
	there could be variation. That business also will have around 9% to 10% kind of growth on the
	full financial year basis. So-- and quarter-to-quarter in this kind of busin ess, always some
	fluctuationsh appens on ROW market and all. But overall, for the year, I ha ve no doubt that,
	that kind of gr owth will not be achieved.
Tushar:	Got it, sir. An d just lastly, on the API side, while this quarter was pretty stron g, but we are sort
	of guiding for a little lower growth rate for the full year. So does it mean th at we had certain
	business whic h is not going to sort of recur in the subsequent quarters?

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A.K. Jain:	Let's say, som e of our APIs, which we were selling, but on which our vo lumes were low,
	certain APIsh as gone to European customers and there, I think there was a bulk procurement
	was there for their businesses and all, which was also at a higher margins was there.
	And that busi ness will continue, but there may not be third quarter buying to an extent. So
	once they con sume, and then again, they come up. So looking at all those k ind of things, API
	business over all guidance we have given is around 14% to 15% kind of grow th overall.
Tushar:	Got it. And ju st lastly, if I may, progress on the U.S. business from Ipca side?
A.K. Jain:	More or less, business is spreading very well. I think last quarter also, we have said that the
	current busin esses which are happening is translating into almost around INR14 crores to
	INR15 crores . And I think we have shipped around 6 products there and alm ost around five to
	six productsa re under manufacturing.
	So once thos e product goes, probably the business may start on the four th quarter of the
	current yearo r maybe some business maturing may take a little longer time. It's -- we were not
	there in them arket for such a long time. It is taking some time to cover up those kind of
	business. And overall, that's why we are more conservative on that part.
Tushar:	Got it. So, thi s 2Q, we made INR14 crores, INR15 crores is what you highlig hted?
Management:	Overall, H1,w e have made about INR55 crores.
Moderator:	The next ques tion is from the line of Rajakumar from RK Invest.
Rajakumar:	Sir, my questi on is on the cash situation in Unichem. After this payment of th is penalty, would
	you need any cash infusion in Unichem?
A.K. Jain:	No, Unichem doesn't require cash. In fact, they have surplus right now also. And current
	quarter also,t hey have generated cash from business, and they will continu e to do that. So I
	don't think -- and we already sold their Jogeshwari land. And I think overal l proceeds of that
	after, I thinkt his overall -- this payment also will leave some surplus withU nichem. And after
	payment of ta x also, there will be surplus.
Rajakumar:	Okay. And th at money is already realized Jogeshwari sale?
A.K. Jain:	Jogeshwari sa les, yes, money is realized, yes. That is realized in the third qua rter.
Rajakumar:	Sorry, we are in second quarter, right?
Management:	Transactionh appened in the month of October. So it will get reflected in thet hird quarter.
A.K. Jain:	Third quarter. That's what I said.
Rajakumar:	Okay. Okay. Got it. Got it. Sir, and also why there is a huge inventory situ ation in Unichem
	compared to -- if the business between Ipca and Unichem is similar, the in ventory levels are
	very high inU nichem as compared to Ipca?

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A.K. Jain: Unichem business is more or less U.S. business, almost around 80% is U .S. business. And their cycle is such that they need to keep around three months inventory at t h e U.S. and transit inventories a n d all that kind of thing. And since there are a lot of their products is also from their own AP I basket. So there are API inventories and all. We are working also on reduction of those kind of inventory. Y o u will notice that in this quarter, we have reduced overall in v entory by almost around INR1 5 0 crores in the system. Rajakumar: Okay. Sir, L a stly, can you comment on your other listed subsidiary, Lyka L abs, even there is some deterio r ation in that performance? A.K. Jain: Lyka Labs as such, let's say, they do a lot of P2P business because of this GST rationalizations, all that, a lot o f customers have said because you don't produce now in the m o nth of September because that w ill be -- once the price is changed, then only they wanted pr o duction, and they can't take bat c hes and hold. So I think that business got impacted. And I think t h ey had some kind of some rejections and that impact was the r e of around INR5 crores, INR7 crores on their overall numbers. So that has impacted the b usiness, yes. But otherwise, th e ir critical care business, which they are building up and also their animal health care business , what they are building up, that journey is going on as planned, yes. Rajakumar: So the last st o ry is impacting Lyka, right? A.K. Jain: Yes. Moderator: The next que s tion is from the line of Kunal from Axis Capital. Kunal: Sir, my ques t ion is on R&D. Sir, you have around seven biosimilar proje c ts in the pipeline, three of whic h are expected to go to clinical trials next year. So as it is your R&D has gone up slightly this y ear. So should we assume that even next year, the R&D inc r ease will be even sharper than t his? A.K. Jain: I think overa l l, the R&D spend in the current financial year is going to re m ain around 4% of our turnover because a lot of filing and bioequivalence studies and our filing in various markets is al s o getting -- that pipeline is also becoming very strong. So thos e expenditures are also increasi n g. And also your biosimilar expenditures are there. Once the c linical trials start, that cost will be extra. So this 4% may go to around 4.5% or 4.75% in next financial year. Kunal: Got it, sir. A n d sir, secondly, if I were to look at your opex, which includes R&D, that's gone up by only m id-single digits and the fact that R&D has gone up quite a bit. Is it some deferment of some costs? Or there's some cost optimization you have do n e, if you can just throw some l i ght? A.K. Jain: It's basically all other costs remain in control. So there are -- as far as t he manufacturing overheads ar e concerned, let's say, your fuel cost is down. My power cost h a s gone up by just

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1% because w e have a lot of renewal power, power project installation, so that savings are coming.

And overall o ther costs, by and large, except the testing cost, which has mo v ed up, other costs, by and large, remains same. So there are not much of escalation in the m a nufacturing costs. Marketing co s t has moved up by almost around 6% to 7% in this quarter. Kunal: Got it, sir. And is it -- are you kind of have stopped expanding the sales f orce because last couple of ye a rs expanding. So that was also kind of hitting your P&L. N ow it's more of a steady-state g rowth number. Is that what we should assume going forward to o ? A.K. Jain: Let's say, thi s year also, we have expanded the field force. And overall, if y ou look, we have almost aroun d 7,000 now medical reps. So two more cardiac divisions was a d ded in the current financial yea r . And in time to come, we will add one more division on cos m etic dermatology and -- so so m e kind of those expenditures were there is likely to be there. And also one division was added about one division named Flexicare was a d ded to extend our equity on, let ' s say, on pain management because we are very strong with o r thos and we have leadership th e re. But we have only pain products. So we have launched a ra n ge of products. So that division right now, last year, it has started. It is still incurring the losses. So in time to come, that pr o ductivity will also build up.

So we have a lmost around 7,000 people and now additions are not going t o be much, maybe around 400 t o 500 people annually can be added. But beyond that number a d dition is not going to be there in next two, three years' time.

Kunal: Got it, sir. T h at is helpful. And just one more, if you don't mind. On the m argin front. So, in this quarter, t he growth was driven by AI and the subsidiaries -- the top l i ne growth that is, which I assu m e are lower gross margin businesses, while your Indian br a nded was slightly softer. Despi t e that, the gross margin is very robust. So I just want to unders t and how you have been manage d to have like 69%, 70% gross margin? A.K. Jain: Let's say, in t h e -- if you look at the current quarter numbers, the overall, let ' s say, top line has moved up by around 7%. But at the same time, the material cost is down by almost around 3% to 4% kind o f reduction there in material cost. So what we are finding that t h ere is no increase in material c o st as such, procurement cost.

But since ou r product mix is improving, let's say, my chronic product mix is improving, my other produc t mix is improving, where we have higher margins. So that i s resulting in the overall margi n . And also on the API side, certain businesses have started ha p pening, which are also at a high e r margin level.

So that margin has also improved, and that has resulted in almost aroun d EBITDA margin improvement in -- in spite of lower growth in the quarter, we have alm o st around 2.57% improvement in the stand-alone EBITDA margin from 22.89% to almost aro u nd 25.46%.

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And in cons o lidated margin for the quarter has also improved to around 21 . 68% from 19.1%. By and large , it's largely driven by Ipca margins here. And that trend will c o ntinue. The trend will continue . Kunal: Right. So yo u are saying there's more headroom to 25.2% stand-alone EBIT D A margin? A.K. Jain: So margins a r e improving, I would say that. And this quarter is a peak qu a rter. Next quarter, some businesses are domestic businesses comes down and fourth quarter d o mestic business is low. So depe n ding on the mix, but I would say that margin will continue to improve compared to last financ i al year. Moderator: The next que s tion is from the line of Dharmil Shah from Dalmus Capital. Dharmil Shah: My question s are more on Unichem with regards to the generic business. S o we keep hearing about the oth e r Indian generic companies about the price erosion in the U. S . market. So what has been the trend for us for our molecules for last two to three years wi t h regards to price erosion, wha t is the current situation? And how do you expect to pan out i n the next two to three years? Management: Actually, dur i ng our Q1 con call, we had said Unichem has lost market sh a re in certain of its products. Th a t is also because of the lower prices for that product an d increase in the competition. A t the same time, they have also gained market share in a few o ther products, but that convert i n to business will take some time. So going for w ard, we are confident two, three new products will also get a d ded each year and their U.S. bu s iness should grow on a stand-alone basis about 8% to 10%. I n addition to that, they will be a lso marketing Ipca products. Dharmil Shah: Understood. S o 8% to 10% growth is considering all the factors that you had considered. Management: That is corre c t, yes. This year, the growth has been slightly lower because, a s I said, they lost certain mark e t share in two of their major products. That is the reason, nothi n g else. Dharmil Shah: And what wa s the reason for losing the market share? Is it purely based on p r ice? Management: It was that t h e competition increased and people quoted lower prices and t h ey took a certain market share. Dharmil Shah: Understood. S o is it more like a tendering business for us where each year th e tenders. Management: It is not exac t ly a tendering business. When there is a concentration of mar k et share in a few companies, o t her companies also come into business, and it happens. Whate v er they have lost, they may rec o ver in the next cycle. So it's a routine thing in generic business . Dharmil Shah: Understood. B ut do you expect the price erosion to continue maybe -- I mean, if you can quantify sing l e digit, lower single digit...

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Management:	It all depend s product to product. If competition increases, price reduc tion will happen.
	Otherwise, th ere could be a chance price may also increase also. So it is a cycle. So nobody
	can guess tha t correctly. It all depends on competition. How many new play ers come into that
	molecule.
A.K. Jain:	Currently, we are not seeing any kind of shortages in U.S. market. So pric ing pressures are
	definitely ther e. So onetime buying opportunities are a little lower currentl y. So that used to
	translate into more margins, but that business opportunity, we are not seeing to that an extent
	in current yea r.
Dharmil Shah:	Understood.S o, 8% to 10% growth for the U.S. business. But how do youe xpect for the rest
	of the market, I mean, the other geographies you mentioned that you wouldb e marketing?
Management:	That we also explained, we have started filing dossiers of Unichem in resto f the market. The
	dossier regist ration process takes anywhere between 12 to 18 months. Onc e the dossiers are
	registered, we will be taking their product in so many other markets where th ey are not present
	today, Europe , Australia, New Zealand and Canada. and also ROW market. So that process is
	on. But becau se there is a regulatory involvement, there is a two to three year s period, all these
	processes take .
Dharmil Shah:	Understood.Y es, I understand that it's a very long process to get the ap provals and start
	marketing th e new products. But just to understand more on that, cu rrently, the U.S.
	contributiont o the Unichem business is around 60%, 65% of...
Management:	Almost70%y ou can say.
Dharmil Shah:	Yes. Yes. So assuming, I mean, these new products and newer geograph ies, what do you
	expect --I me an, U.S. contribution to come down to what levels maybe next three to five years
	later?
Management:	Then it willa lso come down gradually. Once you get registration, you star t marketing, then
	gain markets hare. So it is a slow and gradual process. But once that proce ss starts, you will
	continuously grow quarter after quarter. That only we can say. But it is a gra dual process. You
	can't expect so mething to happen drastically in shorter period of time.
Dharmil Shah:	Understood.A nd gross margins for last three quarters has been around 54% , 55%. So is this
	purely basedo n the market share loss you mentioned in the key products? Or is it something...
Management:	Yes, the gross margin has come down mainly because of that loss of markets hare.
Dharmil Shah:	Okay. It hasn othing to do with the contract manufacturing business, right?
Management:	No, no, no,n othing to do with that. And unfortunately, the products where they lost market
	share, it wasa lso huge volume. So because of the reduction in volume, theiro verhead recovery
	has also impa cted to some extent.

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Dharmil Shah: Understood. A nd right now, I mean, given that we have added so much ca p acities in Munich and both in f o rmulation... Moderator: Should you have any follow-up questions please join the queue. The next q u estion is from the line of Surya Narayan Patra from PhillipCapital. Surya Narayan Patra: The first question is that the growth for us, which has been kind of relati v ely muted in the recent past, o bviously, because of the kind of underperformance in the exp o rt side. While we have seen th a t Europe as a market, it has emerged as one of the best perf o rming market for many of the l a rger players also. And we hav e seen some price appreciation there that has been helping p e ople. But despite Europe bein g one of the largest market for us, the growth has not be e n in any manner supported. S o what could be impacting our Europe growth for us, sir? Management: No, Mr. Jain h as already explained, it is because of one single product. Excl u ding that product, the sales in a l l other products are good. And the products where sales were good were having better margi n s. So margin did not got impacted. Only that particular produ c t, ex that product, everything is fine. Plus we are doing so many other things to expand our Eur o pean footprint. Many produ c ts are registered, getting registration also in Germany, where g oing forward, we shall also pa r ticipate in tender. We have already incorporated a subsidiar y . So Europe is a focused mar k et, and we are hopeful our growth should be good going ahead in the European market. Plus we are also started filing Unichem dossiers in the European m arket. So basket will also incr e ase. Surya Narayan Patra: Okay. Okay. So we have so far not been seeing the cross-selling benefit. That is what you mentioned. Management: No, no, nothi n g so far. So far, nothing. Okay. Only two dossiers are registe r ed for which now we are in the m arket started talking to customers. Surya Narayan Patra: Okay. Regar d s to the domestic market, sir, see, we have always been o u tpacing with big margin in ter m s of growth compared to the IPM. Now we are kind of start e d tracking almost similar to th e market growth momentum, slightly better though. Going ah e ad, see, there are two -- obvio u sly, two trends are emerging for the domestic market. One is s o me moderation in the growth g e nerally. That is one. And secondl y , a bigger growth trigger like GLP that is upcoming. So con s idering these two aspects, what is our expectation? And what is our preparedness and thought process about the GLP opport u nity also? And beyond this, how should one think about th e domestic overall growth for U n ichem -- sorry, Ipca? Management: So we are ve r y confident our growth will be higher than the market growth. There is no doubt on that. So w e are also addressing the therapies where earlier growth was no t good like cardiac and all of wh i ch we have now started seeing the result. So we are now beati n g market as far as

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	cardiac therap y is also concerned. So we are very confident our growth will be better than the
	market growth .
Surya Narayan Patra:	Okay. About GLP, anything that you can talk about, sir? What is your prepar edness? When do
	you think that it will be there in the market?
A.K. Jain:	See as far as GLP is concerned, we didn't have R&D of that kind for GLP . So E. coli-based
	R&D, we did n't have. So now we have already in process of putting the facility for R&D,
	biotech R&D for E. coli-based product. But it's going to take time. So wew ill not be there in
	that kind of ra ce for--in the current phase of the product. But next phase ofp roduct, whenever
	it comes, we' ll be there. We are already synthesizing the clones and other things are already
	going on.
	And as far as market opportunities are concerned, we are also looking to buy the product from
	other manufac turers and that. So that opportunity we are evaluating. Nothing is finalized right
	now, but wea re-- that process is going on.
Surya Narayan Patra:	Okay. Just la st one bit from my side, sir. In fact, can you talk about you r R&D pipeline,
	whether it is for U.S. market or whichever emerging market opportunities? See, what is the
	core focus of the R&D currently and which way that we are thinking at thism oment?
A.K. Jain:	R&D has cur rent capacity of filing almost around 30 to 35 products. So itw ill include of the
	same product , there are different markets, and this is--each filing is take n as number one
	number. So cu rrent capacity is around that kind of things.
	And earlier,w e were not, let's say, utilizing that to the fullest extent because we were not there
	in the U.S. ma rket. So U.S. filing has also started. I think the two filings has already happened
	and their pipe line is there of around five, six products are in pipeline.
	So --and we have also expedited now a lot of developments for Europe an d Australia, New
	Zealand, Can ada market. So that's also happening. And you will notice that R&D cost is also
	moving up, not only in the biotech, but also on thebioequivalence and formulation
	development. So we are building a very strong pipeline for future growth.
Moderator:	The next follo w-up question is from the line of Saion Mukherjeefrom Nomur a Securities.
Saion Mukherjee:	Sir, just follow ing up on this filing question. So you made two filings alread y and you have 5
	to 6 whichar e under development. If you can take us through from a sli ghtly longer-term
	perspective, le t's say, over the next five years, how should we think about th e U.S. business in
	terms of filing , the characteristics of those files, the products? And how shou ld we think about
	the U.S. busin ess sort of scaling up over the next five years?
A.K. Jain:	We are not a company which will be doing too much of filing based on so mebody else API.
	By and large, what is there in our pipeline, either current pipeline or expected to be there in the
	pipeline. Only those products are being developed and filed for the U.S. mark et.

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So our -- co m pared to other companies, our filings are, by and large, likely t o remain low only, but it all dep e nds on our API capacity because ultimately, unless you have A PI, you cannot be a long-term p layer because you all depend on the price given by other parties and that limits your ability t o compete in the market and all. So that's the business philosophy and that business phil o sophy will remain for longer term.

Saion Mukherjee: So, I ask, ho w many -- so these -- so you would be developing new APIs, rig h t, for this? A.K. Jain: Yes, yes. Saion Mukherjee: Right. And s o these APIs would be like -- is there a number? I mean, ho w should, we think about the kin d of product... A.K. Jain: Current capa c ity is around five to six APIs we can develop. So it's only t h ose development would happe n on formulation side. Some API, we can outsource and als o file, but it's not going to be a significant number. If API is constituting a very small part o f overall product cost, then we may outsource or maybe it's a general type of API with so ma n y products people are producin g , then those kind of API we may not take up. So that's the over a ll thinking. Moderator: The next que s tion is from the line of Rajakumar from RK Invest. Rajakumar: Sir, the first q uestion is, can you comment on the monetization opportunit y with reference to the tech trans f er deal that you did with biosimilars Puerto Rico? A.K. Jain: It's one of th e old product and still having very relevance and U.S. busines s of government is also bigger a nd the party wanted to take kind of, let's say, our technol o gy for your drug substance as w ell as the drug product, both. So we have m ilestone-based payment and royalty-based system. At the same time, that party is expert on an d is filing -- it's a regulatory consultant to so many compa n ies on biosimilar development and all. So collaborating with him will also help us in your q u alification of that plant from U.S. FDA and other markets and all.

So his assist a nce would be available to us because he's already consulting a large number of companies in India, China and Europe also on the biosimilar kind of devel o pment and all. So very experie n ced person.

So -- and -- o n that particular product, he will also, let's say, his focus more and more is likely to be the g o vernment business and other. We will also do some priv a te business. And simultaneous l y, we will also have -- we will also be participating in clinical trial with him and both the facil i ties will have an approval. That's the kind of working we are d o ing.

And on that, we will also get the market share in U.S. So from whatever business he does, almost aroun d 25% is the market share, which will come to us on that parti c ular. So that's the broad unders t anding we have with the party.

Okay. And n o monetization opportunity in this financial year with respect to the deal?

Rajakumar:

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A.K. Jain: No, it's not o u r focus to do the technology transfer, but we want U.S. approv a ls and experience of that perso n for the -- because he has very -- practically each and every c ompany in India, almost all c o mpanies, is a consultant. Very, very rich experience. So -- a nd we wanted to utilize that a lso. It's not our focus that we keep on transferring those technologies and monitoring. W e will be utilizing those technologies for building up our pipel i ne. Rajakumar: Okay. Got it, sir. Sir, and second thing is on the clarification on the margi n guidance. So the last quarter, y ou said your margin will be down by 25 basis points. And n o w you are telling with a better Q2 performance, you're upping your margin by 100 basis poi n ts. Is that correct understandin g ? A.K. Jain: Yes, because the product mix is improving, and that's giving the better m argin. So we are giving that g u ideline. And around that time, first quarter result of Unichem w as not that good. Their business is also improving. So hit which was there in first quarter is not likely to be there in third and f o urth quarter. So that is a l so taken into consideration while giving the margin. So I p ca's margins are improving. U nichem's performance is also improving as far as EBIT D A is concerned compared to t he first quarter. And overall Ipca margins, we have seen the be t ter margins in this quarter. And o verall, looking into all that, we are increasing the overall marg i n guideline. Moderator: Thank you. L adies and gentlemen, that was the last question for today. We h ave reached to the end of the qu e stion-and-answer session. On behalf -- now I would like to h a nd the conference over to the m a nagement for the closing comments. Management: Madam, we c an conclude the con call. I don't think there is any more qu e stions, so we will conclude. Th a nk you, everyone, for participating in this con call. Thank you. Moderator: Thank you. O n behalf of Ipca Laboratories and DAM Capital, that conclud e s this conference. Thank you fo r joining us, and you may now disconnect your lines.

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