Senores Pharmaceuticals Ltd Q2 2026 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Sumit Gupta - Centrum Broking Ltd (CN) - Analyst : Hi, good evening, sir. Thank you for the opportunity. Sir, one question on the emerging market segment, so it has declined. What are the factors leading to this decline?

Question: Sumit Gupta - Centrum Broking Ltd (CN) - Analyst : Okay. So, in the second half, we can expect double-digit growth? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 06, 2025 / 11:30AM, SENO.NS - Q2 2026 Senores Pharmaceuticals Ltd Earnings Call

Question: Sumit Gupta - Centrum Broking Ltd (CN) - Analyst : And with respect to margin, so currently it's around 6.5%. So, how should we look at it over the next 2-3 years at least?

Question: Sumit Gupta - Centrum Broking Ltd (CN) - Analyst : Mid-teens margin?

Question: Sumit Gupta - Centrum Broking Ltd (CN) - Analyst : Okay. And for regulated markets also? Like around, do we expect this to stabilize at these levels, or is there any further room to grow the margin?

Question: Sumit Gupta - Centrum Broking Ltd (CN) - Analyst : So, 40%-42% kind of margin?

Question: Sumit Gupta - Centrum Broking Ltd (CN) - Analyst : Understood. Thank you, sir. I will get back in the queue. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 06, 2025 / 11:30AM, SENO.NS - Q2 2026 Senores Pharmaceuticals Ltd Earnings Call

Question: Naitik Mohata - Sequent Investments - Analyst : Good evening, sir. And thank you for the opportunity. Congratulations on such a good performance by a company in quarter 2. My question was regarding the gross margins. Our gross margins really picked up in quarter 2. So, if you could elaborate on what has resulted in these gross margins and going forward into H2, how sustainable are these margins?

Question: Naitik Mohata - Sequent Investments - Analyst : Okay. Excellent, sir. Excellent. And so, another bookkeeping question. So, we have INR8 crores sort of hit in OCI. So, if you could explain what that is regarding? Sanjay Majmudar - Senores Pharmaceuticals Ltd - Non-Executive Non-Independent Chairman of the Board You mean to say other operating income, correct?

Question: Naitik Mohata - Sequent Investments - Analyst : Sure, sir. Thank you. I'll get back in the queue.

Question: Abhishek Jain - AlfAccurate - Analyst : Thanks for the opportunity and congrats on a strong set of numbers. Sir, as you mentioned, you are targeting around 60% revenue growth in FY'26. So, if you can throw some more light on the FY27 growth rate. As you are adding the capacity in the US from INR1.2 billion to around INR2 billion in FY27. So, just wanted to understand what the target utilization rate of the INR2 billion would be. How much will it add to the revenue and profitability?

Question: Abhishek Jain - AlfAccurate - Analyst : And how much would be the regulated this should be? Sanjay Majmudar - Senores Pharmaceuticals Ltd - Non-Executive Non-Independent Chairman of the Board This should be taken as a target and not exactly a guidance, okay, just for your understanding.

Question: Abhishek Jain - AlfAccurate - Analyst : Okay. And sir, the new API facility in Chhatral is expected to be completed in FY'27. So, just wanted to understand how much incremental revenue would be possible from that plant in the first year and the second year? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 06, 2025 / 11:30AM, SENO.NS - Q2 2026 Senores Pharmaceuticals Ltd Earnings Call

Question: Abhishek Jain - AlfAccurate - Analyst : Okay. Got it. And sir, my last question on the India-branded generic business. So, what is the long-term strategic role of the India-branded generic business within the overall company's portfolio? And what is the aspirational market share or revenue threshold targeted for this segment?

Question: Abhishek Jain - AlfAccurate - Analyst : And what would be the margin of this business when it crosses the INR100 crores?

Question: Abhishek Jain - AlfAccurate - Analyst : Okay, and my last question on the new business acquisition, the new company acquisition you announced yesterday. If you can throw some more light over there, what was the reason? And what kind of revenue potential over there?

Question: Abhishek Jain - AlfAccurate - Analyst : And what is the acquisition cost and expected revenue from this?

Question: Abhishek Jain - AlfAccurate - Analyst : No acquisition cost?

Question: Abhishek Jain - AlfAccurate - Analyst : Okay.

Question: Abhishek Jain - AlfAccurate - Analyst : Okay, got it. Thank you, sir. That's all from my side. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 06, 2025 / 11:30AM, SENO.NS - Q2 2026 Senores Pharmaceuticals Ltd Earnings Call

Question: Bharat Celly - Equirus Securities Pvt Ltd - Analyst : Hi. Thanks for the opportunity. I just wanted to understand Zoraya. So, we'll be using this to market the product because there are a couple of products in the US. Is it correct?

Question: Bharat Celly - Equirus Securities Pvt Ltd - Analyst : Right. And when it comes to the dedicated market for this quarter, what was our out-licensing income?

Question: Bharat Celly - Equirus Securities Pvt Ltd - Analyst : Yes, for this quarter.

Question: Bharat Celly - Equirus Securities Pvt Ltd - Analyst : INR1.2 million.

Question: Bharat Celly - Equirus Securities Pvt Ltd - Analyst : Okay. And how have our own Products grown within the regulated market as compared to the last year? Within the regulated market?

Question: Bharat Celly - Equirus Securities Pvt Ltd - Analyst : Yes. I'm looking for the percentage?

Question: Bharat Celly - Equirus Securities Pvt Ltd - Analyst : Right. And how many ANDAs are we looking to launch in the second half of this year?

Question: Bharat Celly - Equirus Securities Pvt Ltd - Analyst : And this includes the acquired portfolio as well, right?

Question: Bharat Celly - Equirus Securities Pvt Ltd - Analyst : Okay. Thanks. That's helpful. I will get back in the queue.

Question: Sumit Gupta - Centrum Broking Ltd (CN) - Analyst : Hi, thanks for the opportunity again. So, I wanted to understand the gross margin aspect. Since in FY'27, your API, like the in-house API, would be integrated, and so, let's say by FY'27-FY'28, how should we see gross margin faring up? Sanjay Majmudar - Senores Pharmaceuticals Ltd - Non-Executive Non-Independent Chairman of the Board So, Sumit, we have already given an indication that a sustainable gross margin will be in the 60% to 65% range. Exact working once the API kicks in is a little premature at this point in time, but at this point in time, you work with this number.

Question: Sumit Gupta - Centrum Broking Ltd (CN) - Analyst : So, that's what I'm saying. So, as of now, it is at around 55, right? Just give me one minute. Understood, understood, understood, sir. Sure, sure. Okay. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 06, 2025 / 11:30AM, SENO.NS - Q2 2026 Senores Pharmaceuticals Ltd Earnings Call

Question: Hitaindra Pradhan - Maximal Capital - Analyst : Hi, sir. I hope I'm audible. Sir, my question is related to your medium-term growth guidance of 25% plus, gross margin of 65% -- 60% to 65% and regulated market 40% plus. So, there has been some upside to the EBITDA margin from your regulated market business this quarter because previously it used to be around 35%. So, I just want to understand what is contributing to that? I mean, the new launches because as per your previous kind of description in the last quarter, so there have been, like, government channel controlled substances that you kind of sell and your own ANDA as well. So, in one, there was a lower margin, and your own ANDA, you kind of generate licensing, and then there is, like, profit share as well. So, that kind of gets some additional margin or upside to your margins. So, if you can just elaborate on your revenue profile when you launch your own ANDA, and what the margin outlook is, from the time you launch to whatever timeline when the sales pick up, and all. So, that would be helpful.

Question: Hitaindra Pradhan - Maximal Capital - Analyst : Got it, sir. But in a regulated market, it would be fair to say that it would be kind of a J-curve. Initially, upfront, you receive licensing, and then as the sales pick up, there will be profits, and the margin profile can improve for themselves, like, depending on if the product kind of continues on its sales trajectory and all, especially with your own ANDA, like, you -- what you sell.

Question: Hitaindra Pradhan - Maximal Capital - Analyst : 42%. Yes, sir. Okay, sir. Okay. And then the second and the final question is on your supply chain for your API. So, you, like, highlighted last quarter as well, like you kind of get a very marginal quantity from China and all. But given the tariff situation and the disruptions around, where do you source it from? What is the supply chain that you're looking at, especially for regulated markets? And if you can just give some more color on that.

Question: Hitaindra Pradhan - Maximal Capital - Analyst : And sir, the API facility backward integration, how much of your like, you say you will be consuming captively, like, you plan to do of your entire consumption from your own facilities, or you will still be like, importing from outside post the API plant is operational?

Question: Hitaindra Pradhan - Maximal Capital - Analyst : It will depend on the spot prices, sir, during that time, I know the decision of.

Question: Hitaindra Pradhan - Maximal Capital - Analyst : Yes. Okay, sir.

Question: Hardik Gandhi - HPMG Shares & Securities Limited - Analyst : Hello, sir. Congratulations on an absolute set of numbers. I just wanted to know one thing, given that we have the exclusive rights for a lot of brands for the US and CGT things, right? So, what is our right to win there, and what is stopping other players from doing the same? I just wanted your thoughts on that.

Question: Hardik Gandhi - HPMG Shares & Securities Limited - Analyst : Understood. So, just to know more on this, what are the risk mitigants we have in place, or just from a strategy point of view, because I'm seeing that the exclusivity period is just for 180 days, right? So, I'm just thinking from a different point of view that we are at a very healthy margin right now. So -- and given that we are listed, anyone can see these numbers, and it could be either a competitor or the regulator himself, and ask for a lower margin product. So, what are the checks in place? After six months, we haven't found ourselves without a customer on that front.

Question: Sanath Vaze - Centrum - Analyst : Hello, sir. Thank you for the opportunity. Am I audible?

Question: Sanath Vaze - Centrum - Analyst : Yes, sir. Just one question. Can you provide input on the launch of semaglutide in the ROW market?