FY26 closed 21% EBITDA matching Q3 cut.

For your GLP-1, do you only plan for fill and finish or do you also manufacture API and other drug substances?

We don't manufacture API ourselves. We procure it and it is easily available in quantity, so it's not an issue. We may have some arrangements with CMO, et cetera, to formulate that.

Fill and finish is through CMO, right? And what would be our capacity through them and which markets are you targeting?

Fill and finish right now is through CMO. Over a period of time, we are also looking at whether we internalize this fill and finish for certain categories of products. The Lilly partnership is all completely sourced from the Lilly franchise. Our checks revealed there's enough capacity that we have signed up for, both from the CMO network as well as from partnerships with players such as Lilly. For the non-Lilly partnership molecules, we will pretty much supply to most of our ROW markets, the U.S. market as well as Europe, India of course.

Can you talk about the India business? We have seen probably some slowdown in the branded business. For your tirzepatide tie-up, how are you thinking about that opportunity? Are you also planning to launch semaglutide on patent expiry?

As soon as the Cipla file is approved and we are able to supply the product, which we now think may be a little delayed beyond March, April, depending on when the approval comes for semaglutide, Cipla will evaluate its launch into the market. On tirzepatide, we are hoping to launch as soon as we can; this is a fairly material opportunity with potential in Tier 2, Tier 3 towns. On India slowdown, in the first quarter respiratory was a very large share with not much acute season; the business is recovering strongly in quarter 2, and in quarter 3 we should be at or higher than the India market growth rate.

On tirzepatide deal with Eli Lilly, can you discuss the arrangement? Will you be booking the revenue or how will partners share the economy?

We will be launching a brand called Yurpeak, which is exclusive to Cipla, and we have nationwide distribution rights and the full rights to promote and distribute the product in India. It's like any of our other partnerships, product will be supplied by Lilly and marketed by Cipla. The product is supplied to us at a price as material cost, and whatever margin arrangement reflects in gross margin; marketing cost is ours.

On the revised EBITDA margin guidance, it's a wide range. Do you anticipate higher R&D spend and other spend in second half contributing to this wider guidance?

In the first half you had Revlimid benefit which won't be there in the second half. Second reason is R&D where some programs we picked up will have expenses pick up. Quarter 3 will be a season quarter for respi, base business should grow YoY. But quarter 4 is usually the lowest in terms of both sales and margin historically. Based on these factors we're suggesting a range; how Yurpeak shapes up will also play in the mix.

On the R&D guidance, you mentioned 500 basis points in opening comments. I didn't quite catch what you mentioned in terms of spend being higher?

The R&D spend planned for the year as against estimating now for the entire year - the spend will be about 0.5% higher. I may have said 500 basis points, I meant 50 basis points, 0.5% of revenue higher basically.

What would be the accelerated filings - in which specific areas? Is this same U.S. generic and respiratory or biosimilars?

In the similar areas as we've been working on, which is basically complex generics, mainly in those areas and respi, oligo, peptides - those are the areas that we are working on and what we've added this year.

On the India business, how do we ensure that Cipla can go back to growing in line with the market, particularly on the branded business? Is the Eli Lilly bit what gives you confidence on growing higher than market?

Our business has very good diversification. There are elements with leadership which have been seasonality dependent on acute and respiratory. But we're building strong franchise on diabetes, cardio, urology - the depth is solid. Across these segments we are growing faster than market already. Over 3-4 years we have been ahead of the market. We are confident in coming quarters we'll deliver market-beating growth at overall level - even without the Eli Lilly in-licensing.

On Eli Lilly tirzepatide first-mover advantage in India - what is the likely scenario once genericization of semaglutide happens in India? What kind of opportunity can be mutualized?

Our endeavor is to go for products which bring superior science. Even today between doctors, tirzepatide has a distinct set of users; semaglutide will be used for many others - both molecules will stand on their own. Tirzepatide brings strong superior science. Semaglutide will be a large market shared by many people. Whereas our version of tirzepatide is a strong market with strong science; between us and Lilly there will be enough muscle to take this to market and create the opportunity.

On gross margin sequentially - we have seen 160-170 bps decline despite strong U.S. sales. Is it because of price cuts in Revlimid or something else?

One reason is lena, there is some price decline witnessed in quarter 2. The other smaller reason is that the tender business in Africa had picked up, and generally it tends to be not evenly spread out. Third, the R&D material that you buy also sits at material costs - when you buy that, it impacts gross margin. There's no core issue; core is intact in terms of gross margin.

On capacity expansion at Fall River facility for respiratory - how would the economics look manufacturing in U.S. versus India?

The U.S. is going to be more expensive compared to India. The flip side is there's no freight. Even then, total costs in the U.S. are expensive compared to India. It's not 100% more expensive, neither is it the same cost - depends on the type of product. Capex is the same; material costs are similar; running cost of power is similar. The key difference is labor cost. These respi plants are also fairly automated.

Do you still look to pursue both the Redihaler and the QVAR or would it just be one of these two when you come to market?

Both are independent files and both are for us opportunities that we can onset.

Given Q2 had much lower contribution from generic Revlimid and we're at 25% EBITDA margin, with acute seasonality improving and respiratory launches in Q4 - do you think we'll be lower in EBITDA margin compared to Q2 even after considering the higher R&D spend?

The guidance range assumed a certain percentage of R&D and R&D is ramping up in second half even further compared to quarter 1. We've identified opportunities compelling to go after from a timing perspective. The 0.5% impact is what's coming in. If I take away the R&D we're spending, the margin is essentially the same range. For full year basis, we factored in what Revlimid could do, and we are pretty close to that aspect.

On Eli Lilly deal extension to South Africa or Africa market - was there any scope?

That deal has already struck out there in South Africa in the last year itself, where Lilly has partnered with another player for Mounjaro and Novo Nordisk has launched on its own out there, the ozempic franchise.

On Abraxane launch, how is the product picking up? Is it in line with expectations in terms of market share?

Not quite. We are slightly behind where we wanted to be on the product. Part of the reason was that we found the market had extra stock when we launched. Since the last 2-3 months, the situation has changed; we are beginning to pick up share now. Initially when we launched the market was oversupplied. It's a lot better now.

On tirzepatide, will you add specific sales force or is existing diabetes sales force enough? And if you launch semaglutide, won't sales force be confused?

We've added field force already, recruited and trained over the past 3 to 4 months. When we do semaglutide, the field force will be a different field force - it's not going to carry both products in the same field force. The tirzepatide field force is exclusively for tirzepatide and other products. Sema will be sold by a different division.

Could you please repeat the EBITDA margin guidance for FY26?

For the full year is 22.75% to 24%. Earlier it was 23.5% to 24.5%.

On lanreotide - will we be around 35% again or stay at current levels? Any competition coming in near term?

Lanreotide will continue to go up. As more capacity comes online, we are seeing the effect of capacity unlock and it will continue to go up in scale. Publicly there is information of other players who have filed; depending on their timing, calibration will be done. Even if Cipla reaches 30% and the innovator is 70%, there's a sizable share that can be taken.