NATCO Pharma Limited ($NATCOPHARM)

Ladies and gentlemen, good day, and welcome to the NATCO Pharma Q4 FY '26 Earnings Conference Call, hosted by 361 Capital Markets Private Limited. [Operator Instructions] Please note that this conference has been recorded. I now hand the conference over to Mr. Hrishikesh Patole from 360 ONE Capital Markets are Limited. Thank you, and over to you, sir.

Good afternoon, everyone. On behalf I welcome you all to the Q4 S26 earnings conference call of NatcoPharma. Hope everyone is in good health and doing end. On behalf of NATCO today, we have with us Mr. Rajeev Nannapaneni, Vice Chairman and CEO; Mr. Amit Parekh, CFO; Mr. Rajesh Chebiyam, Executive Vice President, [indiscernible] and Mr. [indiscernible] Investor Relations. I now hand over the call to Rajesh for the management's opening remarks. [indiscernible] open the session for Q&A. Over to you.

Great. Thank you, Mukesh. Good afternoon, and welcome, everyone, to NATCO's conference call discussing our earnings results for the fourth quarter of FY '26, which ended March 31, 2026. During this call, we may be making certain forward-looking statements, which are not necessarily historical facts. And anything said on this call, which reflects our outlook for the future must be reviewed in conjunction with the risks that the company faces. We undertake no obligation to update these forward-looking statements. I would like to state that the material of the call, except for participant questions, the property of NATCO, it cannot be recorded or rebroadcast without NATCO's express written permission. We'll begin with a [indiscernible] highlight and then follow up with an interactive Q&A session. NATCO recorded consolidated total revenue of INR 4,375.9 crores for the year ended March 31, 2026, as against INR 4,784 crores for the last year. The net profit for the period on a consolidated basis was INR 1,415 crores as against to INR 1,834 crores last year. For the fourth quarter, which ended March 31, 2026, the company recorded a net revenue of [indiscernible] crores on a consolidated basis as against INR 1,287.3 crores during fourth quarter of last year. The profit for the fourth quarter on a consolidated basis was INR 268 crores, including the share of profit of associates as against INR 406 crores same billion last year. Net profit for the quarter and financial net includes a onetime benefit of INR 115 crores as the company has elected to move to the new tax regime from FY ''26, '27 has remeasured its deferred tax assets on Mac credit and other deferred tax assets liabilities. For the quarter, revenue from the associated company [indiscernible] Holding Simia South Africa was at INR 128.2 crores and profit after tax was at INR 102.5 crores. NATCO share of profit based on the current holdings stood at INR 35.7 crores. Thank you all. Now we'll take the Q&A.

[Operator Instructions] We have the first question from the line of [ Kandi Perera from Dolat Capital. ]

My first question is on the sales. So on a Y-o-Y basis, it are much lower. So I understand it's probably because of [indiscernible] But we have any impact from the West Asia was? This part, you say -- now first question was what was the impact?

I think as you point of this impact of revenue less regard the decline. The second question was if we have an impact of Middle is we were able to supply our products. We had some things that we were able to supply. But there has been an increase in the price expenses because we had to reroute from a traditional carriers, but we were able to manage .

Okay. And also our other expenses are much higher as a percentage of sales this quarter. Is there any onetime factor anything in this?

Yes. So yes, the other expenses largely this quarter, we had higher R&D expenses. And also during the quarter, we had looked some of the inertia there were some write-down -- so net, it is largely because of engines and reiterate because of the engineering expense rate.

Okay. Can you quantify this?

Yes. So R&D so engineering item would be around INR 20 crores, INR 30 crores. And R&D would be the remaining last part of the regarding would be the items.

Helpful. Okay. And our FY '27 and FY '28, our tax rate would be around 22%, right, according to the new tax regime?

So including the search, it could be around 25%.

We will take the next question from the line of Rahul Chaudry an individual investor.

The presentation doesn't have any guidance for the coming year?

Our expectation is Rahul that we should do about INR 3,400 to INR 3,500 crores of revenue. our expectation is between INR 700 crores to INR 750 crores back. I'm making an estimate with some assumption of some increase because of the war. . So again, I can't predict everything that's going to happen to be. But there's some buffer, but I think that's our expectation that we do. And in relation to that, our South African associate firm, should do, depending on the exchange rate, about $580 million to $600 million of revenue and the bad expectation of that is about 47 million to 48 million. I get subject to how exchange rate moves. And other related factors. So the associate profit is subsumed in the INR 700 crore rise.

Sir, this quarter, did it have any substantial commodity divide revenue or we are going to book it in Q1 mostly because it's a 6 months bump up only will get the share.

I didn't see a ban policy or line. It's fairly competitive. I don't see -- we had a little bit of a sale, but nothing substantial that can drive can make a meaningful impact on the other though it is a reasonable launch, but we -- I think we launched with [indiscernible] generics, even though mates an ex but I think we had multiple generics in the first wave. I think 4 or 5 gas had exclusivity. I don't know the exact number. So it's been fairly competitive.

So what would be the cash on books? I think the presentation I must missed it.

Yes, so net cash would be around INR 2,400 crores at a group level.

[Operator Instructions] We have the next question from the line of Parati Surendra and DT Investor.

[indiscernible] Over the last certain quarter periods have been waiting from the meaningful value creation. Can you please explain what are the key get that is improve the investor confidence and the price growth in the coming year?

What your question is what are the key products for the financial year 2. Is that the question? I think there are 2, 3 good figures. I think one is [indiscernible] have launched. I think the parent for the mine. So that is doing reasonably well. we couldn't launch on day 1 on the pad, but we could launch a while on day 1. We're able to cater to a market which is very price sensitive. So even though everyone that you're getting per while is maybe 1/3 or 1/4 of what you're getting on a 10, but in terms of market share, I think there's been a good uptake. And our particularly our Brazilian is going to do very well. We had to launch in the return in our book. So these 2 will be the major triggers. And of course, we will be having consolidated income coming from South Africa from our shareholding in South Africa. So I think compared to the past, I think macro has a more diversified revenue and these earnings are without lending a mine. So obviously, there's a drop compared to last year, I think the impact on earnings is substantial. But I think in spite of the fact that there's actually more than I or it's a very competitive and we are able to generate about 700 additional 50 packs, I think that's a reasonable [indiscernible]

The entity progress challenging year compared to -- what do give the management confidence that in your be better .

I think that we want to look at this is I think we have always guided there will be a decline. I think our commentary has always been likely will decline. I think we understand that the nature of this business is that you're going to have and then you want to do very well at this time. And then when there's going to be a drop, you're going to have a year or 2 where you want to see a angina largely very happy that things will -- it's a cyclical business financing the nature of the beast. And because we bet on a lot of these actors when the jackpot comes and earnings good you have an excuse. And you don't have exclusivity, the numbers look I think you have to look at it, I take the bigger picture. I think we have a very good pipeline for the future with a lot of exclusives coming up. We don't have anything in '27. That's true. But I think '27, you'll see some of these other exclusive train. And I think '28 onwards, you are able to see a guide.

[Operator Instructions] [indiscernible]

Okay. And just a follow-up on the utilities. I mean, you mentioned a previous production as doing well. And what about Canada and other markets, I mean, do we expect to smart come through this calendar year, camera and how probably and other -- any other products in cone.

No, we have other oncology products which are coming through both in Brazil and Canada. [indiscernible] we don't have a filing standard yet. So I think we are working on a few things. not now. In the first wave, we launch in summer. But our oncology pipeline is there in those results at [indiscernible]

Okay. And the second question is on the M&A. I mean, post op, we have said we are looking for more. And then how is the progress here? Any update?

Yes, looking at a couple of times at I think as Amit said, we have over 2,400 core net cash. So very comfortable we can look at 1 or 2 large acquisitions. So we're looking at different things. As of now, I don't have an update, but hopefully, we'll be able to achieve something in this financial year.

We will take the next question from the line of [indiscernible] Value Research.

Yes. So want to get a picture on growth beyond it. given you said that FY '27 will be a muted year, but FY '28 onwards, we can see a ramp-up in revenue and so it based on because the acuities are losing. So I just wanted to get a better picture on what kind of medicine are coming what therapeutic and most importantly, have we already filed for them? Or are the exclusivities just ending another period and deal filed 4 months at point and the verdict will only be known after the... If you could give us a picture.

Okay. I'll answer the question. So basically, we made a small retest correct that before we answer your question. Our start revenue last year was INR 730 crores hit spend better. Regarding to answer your question about what pipeline will we have, I think we see -- we can't name which exclusive is going to happen this year because loyalties are borne by matter. We can only disclose them closer to the launch. What I said you content is that we have some exclusive regard in the financial year 2017, 20 days. And we also have some launches in Brazil and Canada in '27 and '28 drivers for both U.S., Brazil and Canada will drive 3 markets for driver on. You will see the so revenues from INR 7 crore dramatically, we'll also see exclusive revenue coming from the U.S. [indiscernible] name so I another, but that was asked. But I think how much do we see parties the question I mean I'll be better able to predict with time, but I think we see that our earnings should come on around 15% to 25% every year starting from -- so '27 of ACI, where we sit around 770 from there onwards will be compounded growing around 15% to 25% depending on the level of exclusivity and how much financial I think we'll see a more stable compounding growth and in the one-offs that you have seen in the past, hence the next 2 tales.

Okay. And the second question is on the South African business that we've made an investment recently. I get that on -- in our overall portfolio, it helps diversify our revenue but from the business perspective, what is the value that you macro as per the point, I'm sorry, I think that which company? The South African investment that we had made.

See, basically, if you look at the word there are 10 to 15 markets that you need to be present to be successful. And right now, our position and profit is about 35%. Hopefully, [indiscernible] to increase our shareholding as and when major so gives us an opportunity. I think that in that we have to look at these things strategically. I mean you can't look at them in terms of we're not -- we're only getting a free flow only 5. But look at everyone the #2 company came for the Africa to bid a company like that over the last year wouldn't have been possible without the acquisition. And in a competitive generic environment like ours, it's very difficult to grow organically. You have to grow in our debt.

And and if you -- unless you do these Board acquisitions, you're not able to acquire share and size and scale. This business now is all about scale. We need to be present in those 8 or 10 countries have a filing in manageable countries and able to get scale. You might get wrong in 1 or 2 markets, but there will be some market that will work and then we still had this. And the pipeline is going to get more competitive and [indiscernible]

And to get share now new market, we'll have to do an acquisition. If you start on [indiscernible] we've seen in rest now we're making money, but it's a 10-year journey. So I think you have to wait that long. So I think if you want to unstart things you need to buy the west thing for now.

Okay. If I could just reason that's 1 question. So how is the -- what is the outlook for South Africa and some partial market in your opinion? And let's say, the growth outlook for the next 5 years. And also, let's say, 5 years, I know there is a very specific question, but 5 years later, are the profit level, what is the contribution we think that the investment would contribute to, let's say, can we expect something around 15% to 20%.

See, right now, it is like -- if you look at the normalized earnings this quarter, I think, however, it's about -- I mean, can otitis onsite. South Africa represents about 22% of our earnings right now about data. So it's -- the 2 things the 1 is that -- we always are very U.S. focused. So what we're doing [indiscernible] now is trying to build a diversified portfolio in Brazil, Canada, India and U.S. for the and if we have more diversified -- this is why we have achieved through the acquisition. Two, we hope of a we're doing a lot of new initiatives in terms of finding new products, our oncology pipeline, [indiscernible] So the benefit of that is able to be over a period of 2, 3 years. Right now, the return that we're getting is probably only slightly further than bank interest. But over a period of time, you will see the benefit where you'll be able to see about 15% to 20% return on cap but even more but it will take time, but you need to pay your players patent.

[Operator Instructions] We will take the next question from the line of Sudhanshu from Marcelus Investment Managers.

Sir, my first question is regarding the other expense increase on a quarter-on-quarter basis. So it's a deep sum. And as was explained some time ago, it's primarily being driven by R&D expense. So I just wanted to know what is driving this surge in R&D spend? Is it like imminent launch, which is leading to filing expenses and other things? And then secondly, is it going to the recurring rate at which this expense is expected -- so there are 2 parts to claim R&D expense when you start to India is a very long-term investment. Nothing happens within 6 months or 8 months. They all happened 4 years, 5 years 7. We're investing to -- in terms of the expense this particular quarter, I think part of it is R&D part also we had an inventory write-down of certain loss space in we had a one time right now. So that was the reason he -- in terms of like R&D expenditure next year, I think we expect to spend about 7% to 9%. And in terms of earnings, we have already budgeted that, and I think our bad presumes this expedition. You might have one quarter where you'll have higher expense 1 quarter, you might have higher profit but to sort of normalizing over a year, I think all the expenses are baked in and the profit is after that.

Understood. Understood. The second question is there is a corresponding pace also in the other income ahead. So what is the reason on quarter-on-quarter visas other income is rising -- that's pretty good I mean that typical other income typically tends to be -- I think what things items that typically there's interest income this PLI income and licensing fee when we -- what we call product licensing. And that particular require we had some license income for the India launch of some of titan then we have some other licensing income everyone from pop. So I mean these are all depending on events for this quarter, we were...

Got it. And one question, which is basically regarding the [ Sumatec ] launch in India. So you were there in the pen-think in the wild market, not in the pain market. So how has been the outcome so far? What is your initial expectation, both in terms of the market size that you are seeing, which is forming up and evolving daily and your own performance -- company's own performance in that addressable market.

It's been a very competitive launch in a tetra business. And we could launch on day 1 on the pen for the we launch in a month later. Get some share, but we're doing better with the wire than the pen. So unfortunately, if I were the only generic in the market and with our partners, [indiscernible] unit now we are doing about our brand is doing about 2 crores a month. And our partners, I think, are to see you will be having about INR 4 crores to INR 5 crores bank in our earnings including our partners. So you can say some outdated about INR 4 crores a month on that as I mean I'm normalizing for onetime launch to. We do see this number, I think we are thinking that we able to go about INR 75 crores to INR 100 crores annualized over the year. We'll be able to achieve it. This is our expectations. I mean, the market has been super competitive by -- but I think we've got a reasonable good start. And I think -- and we are able to disrupt the market. But still the market in terms of sales, it's still an the proposition on the wine is okay, an for, I mean, normalized between INR 3,000 to INR 4,000 to buy -- so there's a market which is willing to lose milling to pay INR 30,000 to INR 4,000, [indiscernible] INR 70,000.

So that market is able to capture. So I mean, as a play for everyone in every market, but I think that's our expectation. That's fair -- if I can ask one more question -- in last couple of calls, you had mentioned about company looking at a few more acquisitions. So if you have got any update on that front, how -- if a target has been identified -- we're running a couple of transactions.

But again, nothing has come to a stage where it is where I can tell you something. These are always ongoing negotiations when they come to a stage where we can announce it that people at it. But if the question is, are we working on license, yes, we are working on traction. So are we comfortable doing a transaction after 3 years. We can engine that will strategically strengthen towards the build geographical distribution.

[Operator Instructions] We have the next question from the line of Ram, Individual Investor.

Any update on [indiscernible]

I think it's too early say. At this time, I am have nothing much.

We will take the next question from the line of Anil an individual investor.

portfolio, let's say, [indiscernible] Are we planning for any other innovative pipeline?

That's the actual one that's on internal company pipeline. The other ones, primarily are the biggest ones like ones we've done an investment in site is probably an exciting of our innovative pipeline. So that -- you've probably seen the news. They are the first something in the world, certain identity big kidney, which was transplanted and they have done 2 patients so far. And the patients are able to do well for about 6 months and then finally live this. So just trying to figure out what the right dose in terms of the renewal operation, so that could take the program forward. It's probably the most exciting one. And it timing progress as we go along. And [indiscernible] also looking at aerate. So I think on the -- if you are still partly most advanced innovative pipeline, that's probably that time, but the most exciting.

Awesome. And are we planning for completing the acquisition in FY '27? How it is going to be extended to FY '28 acquisition thing.

I think we're shopping. I think hopefully, will grow something in financial year 7. But as I said, these things I understand to that. So I think just -- the question is in moving to do something, yes. But have you closed engineered, yes. [indiscernible]

We will take the next. We will take the next question from the line of Khalid Mohamad from Nirmal Bank.

I just wanted to ask if you have any tentative milestones for Genesis business?

Meet milestones, I think once it's time doing more patients and there is once they get an idea what the light immunosuppression grows I think margin is clear. The fact that the transplant products and the patients are able to do well for about 6 months helping of very monumental I think the scheme of things, existing you're able to translate and we can put that in women and assuming it ever to well for a few months, it are absolutely monumental. The question is what's the right minimal [indiscernible] growth, which will make it work. I think it's the question I ask it. And if you have an answer to that question as we keep closing more patient. I think then you have a break. I think that's a question on I will answer it.

So do you see that happening in over 3 years, 5 years? Anything?

I think there's a record more basis. I think my understanding is that they won't go to do more transplant for the coming year. So I think in the next 2 to 8 points, we will see more transfer and the average experience in terms of what's the nitinol these patients. But it's absolutely exciting work and absolutely great proven. And this will change enough since in a great way. So for the , but these are all like wound shuts as you know. I mean we have feasible amount of risk. But if we get it right agent is a lot of -- so I think that's very okay.

Yes. I shared that. But when do you see the shares coming to the top left, like any?

Or what's the quantum I can't tell you something that I have -- even I myself have no idea, but -- what I can tell you is that what happens with [indiscernible] I think we need to understand that when you do these things, it's a binary where either you will get it or otherwise it will just -- it won't happen. You just have to the patient and basin updates based on whatever we get. I mean they also can build up at the website really in terms of what all the major breakthroughs that are happening on [indiscernible] Just have basic. Hopefully, it 18 months are able to get more racecar more exciting, and then I can come back and report to you. But we just have a [indiscernible]

We will take the next question from the line of Nida Kyle, an individual investor.

Sir, I wanted to ask you about our Crop Sciences division. I wanted to understand this division, the industry, if you can give any color on that and our business?

I mean that's a good question. So I think my colleague, Rajesh will answer. I think a lot to tell us about our pre-argin profit can you speak to the..

Yes. And we have some the process of demerging the business. And one of the primary reasons we sell also it gives them more focused approach because the business ultimately the customers are quite different. See, one of the key things we are pursuing as part of our approach is, again, trying to find molecules which are a little differentiated from most of the other players. And the approach that we've taken towards pharma, right? So products, which would be unique, which would be patent control, limited competition. So that's the efforts that we are taking -- so we have slowed it building on overall presence in the market, right? It's been only 3, 4 years of our commercial presence actually. And so the past 2 years has been mostly learning in terms of how the market works and all that. But we believe that once you have a very strong product and with the right offering to the partners, I think we do wonders. So yes. So in terms of sales, let's say, this year, we ended up close to INR 140 crores, right? And as opposed to declare numbers last -- so from 140, we certainly have aspirations to grow significantly well. It's also being driven by product launches as well as the penetration with the channel, okay? So the talent partners that we have are compared to most of our tier system less. So this is the primary so all products channel and also the people addition all these activities are going on. So I think we're very confident going forward. And that's also one of the main reasons for demerging and having more focus on the business. Is that good?

We will take the next question from the line of Rahul Chaudry an Individual Investor.

Sir my first question is a follow-up question regarding the semaglutide when I don't see any like media, which has been about the pen launch. You said you've already launched it signal we launched a pen.

We said that the announcement or restore have launch next month. I think we launched it avian March, and we said that in nondependent April in Actually, when the launch happened, we did announce again were in was covered in the eats not you like first line or go there on a utility to make some [indiscernible] on your day line, you make more nodes and make the announcement. The vison day on site, but we announced we made a little more noise about that.

Sir, are we selling it through the digital pharma platform like, I don't know, like Tata or GMG Pharma I mean, exactly, I don't go. I think the work on the print. I think that some digital platforms are also selling our products. But yes, I think we are -- but again, we quite a prescription than not. So I think you know dots.

I'm using novel[indiscernible] and menace. I feel very city when I very sad when I have to buy that, and I can't find that cost products here and go half year that I understand I can do it at I think all the products that we are having in the subacute portfolio, our mile has done better than the pet. I think clearly in that where we are.

Sir, just one last follow-up question. Sir, we are 100% control of what we do. That is our company. And we are going to have a pretty -- what do I say, subdued year ahead as for your own. Yes. So we have a lot of cash. So are we not at all open to buybacks at a certain price point because I mean...

No, I question give us the answer. No. I tell you reason for that because my [indiscernible] the GA should be used for an acquisition, which will give us more long-term return and I think there are opportunities where we can diversify our portfolio and build a more strong global footprint and I mean a lot of the challenges that were high. The last years have been great quite -- they've been very -- because of our concentrate event. And I think we need to evolve into more diversified and as a firm. So that gives you more stable earnings. And for that, you need to do acquisitions. And I think that a use of cash rather than buyback can also be considered at a right time. But at this point, no, my degree is let's try one on it.

So sir, just for this acquisition that you are planning or targeting, you must have done it down to a specific geography by now? Or I can answer that question now. We're looking at different deals, when this answer a stable.

Okay, within the country as well or all outside I'm actually go outside I'm position and in a is about 7 years, more into comp.

[Operator Instructions] We have the next question from the line of Hrishikesh Patole from 360 ONE Capital Markets.

Quickly just questions to Raj. And given the especially more and subsequent cost inflation. What would be the impact on our Agrichem business? I mean we have seen a lot of peers in the Agrichem specialty still talk about impact of loss -- could you in business things like an Africa business.

Yes, yes. Firstly, one of the things like which alias mentioned earlier, the in costs are going up, right? So we have already saying 25% to 30% increase in the input raw materials. And see, I think, even industry, fortunately, most of the procurement for the car, at least half of the equipment has already been done. So with that inventory preexisting, we are able to still manage at a price. But going forward, it is uncertain. I think that the slightly increases of prices as well. But we are costly monitoring the market and the competitive behavior as before we make our decision. But I think pharma is a little more different.

Okay. I just want to clarify that. Like Pharma, I think even though there's been increase of summer and put a reasonable amount of inventory for the impact of that we're not seeing and do not see the June and August quarter we might see in the later part of the year. And the exchange depreciation sort of kind of offset some of the increase of ore. So I think then there is an impact but we are able -- at all the export business are being relatively less impacted as an domestic. I think we see anybody is doing exports relatively the impact has been less compared to the people who have exposure to outside domestic business. The aggregate business will have more impact for the founder is high on domestic sales. But I think as a principle, I'd like to tell you that export business is definitely. Just a follow up on that. I mean one for export. Annual agrobusiness has led very poor -- the are domestic and the second was just a update on the -- can you just provide a different -- you're breaking up your plan said we're talking about the margin.

Yes, Okay. We have 4 U.S. Densities in our system. We have 2 Atlanta 2 pillars of these factories. In the year 2025, we had inspections in 3 of them. [indiscernible] a combination at scenario and make service gets. So all 3 are inspected back is a facility that has an inspection, I think anything I would say, a long time. So we are expecting an impact on some time to say at any moment. So as a geolocated, other we expect the last financial.

We will take the next question from the line of Aditi and Individual Investor

Sir, so I would like to ask a question that you have planned many expansions in countries. So what would be the [indiscernible] period of that? And when can we see the results on the P&L.

I think President right now, can has been stable. U.S., we just bought a [indiscernible] a few years ago, still losing money. So hopefully, this year will be able to break even -- so that we can just in, let's say, the value of that would take out. I think question will take what people get to starting value where we -- so every business is going to a different phase. [indiscernible] is still in money we want to catch up. So I think if you start from scratch, it takes 5 to 10 years to build a business you buy something and we take probably 2 to 3 years before we start seeing an outfit. So -- but everything is a very large estate because just a regulatory on product take 2, 3 years. So I think Ita

So sir, just a follow-up question. We are doing this as a strategy for U.S. plus other countries, right, to diversify the whole portfolio and not be dependent on tariffs.

Accelerate I think if we look at our earnings today. I think core markets, EMEA, U.S., Brazil, Canada and North South Africa. I would say 50% at 5 countries. Earlier it is the only U.S. Now we have 5, and we're earning now findings are getting the best profitability now. So I think that's a pretty good diversification that we have done. And this happened overnight. I mean, when we're taking that the end is like this, it has been about the last 5 years of diligent investments and R&D and filings and market access and lines and manufacturing and then the full update as

Okay. So there's a last question from my side. Over the March years, we have seen spends market about 40% to 50%. So do you see that as being stable or be in contracting or expanding in the future years? I don't give guidance, I think the same for a decline. So as I said, our earnings will meet in our earnings this year as we did -- I mean, March, obviously, we did about INR 1,400 crores back as you're aware. So it's going to drop by -- so I think they will see a contraction peso. We're going to drop towards 70. But there. But as yes, to answer your question, yes, the.

Let me take the next question from the line of Manohar, Anival, Investor.

Yes, -- then my question is that -- is there any chance the company will get a sustainable and stable profit in the future because we came out in this question like revenues and profits. San let me answer this in a way that you're comfortable to see the net you need to accept the certain business side order of still.

I think our what we call communication has been very fair that we're going to have a couple of good years, they only have 1 or 2 years where it's -- it's the nature of this business. I can someone tell you when you have the upside, the size is very strong, and you have extraordinary amount of market praise, you're on going to have -- and is the nature of this business. I think as an investor need to sort of accept that they want to have in lowest right. And what I can do is the best thing I can do about is tell you as it rolls right -- and this is how we need to pay to our expectation. And I understand how it's going to be. And I'm sorry, I don't know if I don't answer that question, but is how it's going to be. But however, having said that, I very polite about avoiding volatility. And I think as far as analog investments like South Africa, I can spend in still in spite of the volatility, we are able to maintain a pretty good profitability, and we're doing about whatever we projected this year. And it is the air.

Okay. Another question is that I have been following this macro company and you for more than 2 years from now. And you have a very harnessed with your answers. But is there any chance your intentions or plans to become not to the door unformal company.

I always aspire time. But to you, 2 successfully comes if you win to play the game for a long out. If you want to come and say, I get you a very honest answer. If you want like resin to happen in the next 5 years, you want to invest for the long term, which means we need to have the ability to ignore short-term earnings point. Because when investing in something, we need to believe that specific investment will work and it takes 3, 4 years I believe we can be a global company. Is the journey has already started. And I think our investment in acoustic you. And I think if you look at [indiscernible] and natural turnover together. I think we have parts this year past or almost certainly more than $1 billion in revenue. So I think in that sense, we're really a global company. And all a very modest amount of money that we've had. We're able to believe that for and use this money to buy these assets. So the is not a basic. We're going to have 1 or 2 years of factoring, but longer.

We will take the next question from the line of Nitin Agarwal from DAM Capital. Right?

On the for the year, if you can just give us a sense on how much -- how many filings now have you done on the R&D side? Any good filings that have happened and how you're looking for the R&D part for programs for the next year?

I think we've talked about 7 to 8 filings in the U.S. And leading components we didn't hit any major first or fines. Hopefully, this year, we are trying another 9 we try target some low complex and surprise. Hopefully, we have 1 good year net. And just to step that further, the one, the fact that this year you don't have any major filings and that is a consequence of what? I mean some programs didn't play out as expected or just higher competition in what you expected at the just more potato see, generally, the products that we buy and they are like 7 or 8 times, we just don't talk much about it because this is a commodity filing. So only special ones are the ones where we want to be the only one on the mine amounts. And the U.S. is a military cola, right? I mean, especially if in an T-minus 1, [indiscernible] want products, you have a or 10 or 15 be -- so those set not much. So where you make money. You had a filing where nobody is spine or 2, you [indiscernible] something where nobody has filed another first -- so those are very Q1 far between. And if you're able to pull off in our free-to-air period, we're able to pull up even 30 of towers don't very well. So I think we do have a patient and to bond, there on the ball. I think hopefully, we'll pull off another 2 speed. We furlough and we look at our pipeline [indiscernible] approved in 3 months we have [indiscernible] hopefully will have 7 months on that, sorry, exclusively on that subject to FDA clearance and then we have 5 of them are at. So I mean, we have filings or in the pipeline. So we have a here. So I mean we have some. And I think hopefully, we're able to be in up another 3 or 4. So then we have something -- something we talked about in the next

And secondly, if you can give us some more sense on the size of the businesses in Brazil and Canada? And how do you see Brazil Campaign some of these other emerging markets playing out now on market playing out for you for?

So what I can do is let -- so I think our present turnover of this year was about INR 257 crores plus and we have some deliveries from India. So maybe that is about INR 30 crores, I don't collect the number about 28%. So we are expecting that business should go to $55 million to $60 million this year. So that is one big bucket in our numbers. Canada, we are expecting will grow around 10% to 15% is fairly comfortable business. We have couple of big launches, but that's in '27, '28, margin '262. So that's one. [indiscernible] a want to get added. So I think That's a the major one rig.

Sorry, what size you say the Canada was this year? Canada this year is INR 229 crores.

We will take the next question from the line of Anil [indiscernible]

So you mentioned that on the [indiscernible] so can we expect the approval for those accounts of pings that we are planning to launch in Canada and [indiscernible] by H2 of calendar '27?

I think with the products we don't launch in and when not be explaining our [indiscernible] question.

Yes. So we're not be expecting the approval for those medicines -- is it within the H2 of FY '27?

Yes. H2 of financial year '26, '27, expecting approval. Based on that, we expect the earnings in FY '28.

Got it. And my second question is, what is the expected revenue contribution from those medicines that we are launching in Canada, I think the expectation is that we have already even spoke about Brazil will do very well this year. And I think a [indiscernible] a little less than INR 300 crores this year. Brazil will go to probably [ $55 million, $60 ] million this year. That's our expectation. So that is the biggest one, I think. In terms of like revenue-wise, we're not sitting, but what we are saying is that you will see our earnings settle [indiscernible] this year, and we are expecting '27, '28 on our pipeline that we're able to grow around 15%.

Thanks, we take the next last question from the line of [indiscernible] from Midal Bank.

Yes. So with the acquisitions that I'm seeing and the strategy that NATCO is going to take for the longer term, like you mentioned more stable revenues and the earnings, right? So going ahead, what sort of do we see, say, the jackpot kind of business and the same kind of business, if you could throw some light on that?

This year is all driven by the way business. We don't have any big launches not this year. In the next 5 years, that sort of time line. I think some of the exclusions will kick in. I think the biggest one obviously is [indiscernible] I can tell you which year where you're expecting launch...

I mean the acquisition that we have done, so that is to bring more stability, right? So the NATCO's legacy is that word kind of place if you get me -- so in that sense, when you see NATCO in the next 5 years?

I think in the next 5 years, our vision is that we are able to build a global company, which has more geographical diversification and bring less volatility in our earnings. However, having said that, if you look at the business today, we don't have those special contract filings, your earnings are not coming to donate at coming I don't speak for myself, I speak for by any other top-tier companies. If you remove the first wave of generic launch of the complex in out, the earnings contribution of these products representing about 50% to 60% of the earnings of earning the non-ore. And what we tried to do is to bring a lot more less part of the learning. So by saying an idea why haven't leaned base need to contribute 70% of our profit and the first to file or special products on 25% to 30%. The ratio will be other way now. So I think that's what we're trying to say that we can bring that will take in the next quarter.

Thank you very much. On behalf of 360 ONE Capital Markets Private Limited, we conclude this conference. Thank you, everyone, for joining with us today, and you may now disconnect your lines. Thank you.