Senores Pharmaceuticals Ltd Business Update Call Transcript

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

Question: Payal Shah - Billion Securities - Analyst : You can hear me now?

Question: Payal Shah - Billion Securities - Analyst : Good morning, everyone. I have a few set of questions. Firstly, why did Apnar Pharma sell the plant and ANDAs to us? You did mention that the market size of the ANDAs that you have got is around $700 million. And Apnar's revenue was at around INR15 crore for the past three years. I just want to understand the reason for such low sales. At the same time, what gives us the confidence that we can extract more revenue out of these ANDAs? If you can just also tell the peak revenue potential you think we can achieve from these?

Question: Payal Shah - Billion Securities - Analyst : Okay, okay. Thank you so much for the elaborate answer. In continuation to my earlier question, can you also give some color on the profitability and balance sheet? Because they had a debt of INR75 crores while doing a revenue of INR15 crores. So, just what is the reason for taking over such a big debt? Like, is the plant sort of a distressed sale? Some clarity here would be really helpful. Unidentified Company Representative Yes, very true. Yeah.

Question: Payal Shah - Billion Securities - Analyst : Okay. So, my next question is, which are the products or therapies when you plan to shift the production to this new site from the US facility? Unidentified Company Representative Swapnil? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 16, 2025 / 5:30AM, SENO.NS - Senores Pharmaceuticals Ltd Business Update Call

Question: Payal Shah - Billion Securities - Analyst : Okay. Thank you so much for the elaborate answers. That's it from my side. Thank you.

Question: Vansh Valani - Concept Investwell - Analyst : Am I audible?

Question: Vansh Valani - Concept Investwell - Analyst : Yes. So, I just wanted to stress on the fact that we were saying that we want to shift some of the production of our products from the US facility to the new facility that we acquired right now. So, I just wanted to understand that how will that potential help us in margin expansion? Have we made some calculations with respect to that for the next two to three years? How do we see the margin trajectory after this acquisition?

Question: Vansh Valani - Concept Investwell - Analyst : Fair enough, sir. That makes sense. And I just wanted to understand, after our total revenue, will we see an increased percentage term revenue coming from regulated markets after this acquisition? So, if you look right now, it's about 65% to 70% from regulated markets. So, can we expect that as and when we scale up the revenues upwards of INR100 crores to INR250 crores from this new facility, the overall share in the total revenue will increase more from regulated markets? Unidentified Company Representative Surely, yes. Surely, in the immediate future, yes.

Question: Vansh Valani - Concept Investwell - Analyst : Sure, sir. Thank you. That answers my question.

Question: Gaurav D - Ambit Capital - Analyst : Hi, good morning. Sir, congratulations on the deal. Couple of questions, sir. Sir, would you help us understand what it would have taken in terms of a financial cost to set up this kind of a facility on your own? Of course, with the acquisition we get immediate access to capacities but just trying to understand the multiple to book value so would this have, if we were to set this up on our own would this have costed us more than INR90 crores?

Question: Gaurav D - Ambit Capital - Analyst : Got it.

Question: Gaurav D - Ambit Capital - Analyst : I understand. So it's accurate on a large basis. And the land is owned or this would be your lease land?

Question: Gaurav D - Ambit Capital - Analyst : Wonderful. That's great. So I got your guidance, by FY28 we could potentially see an optimal utilization of this facility. So, guessing with the land cost already part of this value, incremental blocks you can set up would be at a considerably more lower CapEx, right? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 16, 2025 / 5:30AM, SENO.NS - Senores Pharmaceuticals Ltd Business Update Call Which should allow you to see capacity expansion for at least the long term too, not only the near to medium term. Would that be the right way to see this? Unidentified Company Representative Yeah, in a way. So as I say, Gaurav, for making this plant operational fully, I have to have very little CapEx. That is point number one. We'll add some working capital that's very obvious. First year target is about INR100 crores to INR120 crores Swapnil already mentioned that in next three years -- two to three years, it has the potential to easily go up to INR200 crores to INR250 crores but we will wait and see how it goes. I think till I reach a decent capacitalization. (Spoken in Hindi)

Question: Gaurav D - Ambit Capital - Analyst : Great, sir. So on this revenue number guidance I missed the part on EBITDA accretion and when do you see this deal being P&L or EPS accretors to your P&L?

Question: Gaurav D - Ambit Capital - Analyst : Yeah.

Question: Gaurav D - Ambit Capital - Analyst : Correct. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 16, 2025 / 5:30AM, SENO.NS - Senores Pharmaceuticals Ltd Business Update Call

Question: Gaurav D - Ambit Capital - Analyst : Got it. So if I may, just a last question before I join the queue with your permission So the five ANDAs they are competitive. So a large part would be by moving our current filings to this side also. You said that it would take three to five months to get those filings done and approved. So this will be to the CB30 route or this will be to the pass route. If you could just help us understand this three to five months timeline please.

Question: Gaurav D - Ambit Capital - Analyst : Understood, sir. Congratulations to the deal. And all the Best.

Question: Jigar Shah - Elevate Research - Analyst : Yeah, hi sir. Good morning. Couple of questions. The first one is on the CapEx. So we are adding two lines at the US plant and now we will have this USFDA approved facility from Apnar Pharma. How should one look at the capacity expansion for FY27 and FY28? We have marked LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 16, 2025 / 5:30AM, SENO.NS - Senores Pharmaceuticals Ltd Business Update Call around INR100 crores for further expansion at the US plant which you have mentioned in the past that it will be done in FY27. So beyond that what is the CapEx plan in coming two, three years? Unidentified Company Representative I think difficult to pinpoint exactly. Please go ahead.

Question: Jigar Shah - Elevate Research - Analyst : Got it sir. Thank you for the answer. Sir I have a second question on the debt. So we have reduced some debt from the IPO proceeds. So now we will be adding this around INR75 crores of debt from Apnar Pharma. So how should one look at the gross debt by end of FY26? And do you see borrowings increase further from here? And what is the broad plan of repaying and reducing the debt?

Question: Jigar Shah - Elevate Research - Analyst : Got it sir. Thank you. And if I may ask one more question. So how do you see the whole tariff situation evolving? And in case if there is any tariff put on pharma products manufactured outside of the US. So how do you plan to navigate that? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 16, 2025 / 5:30AM, SENO.NS - Senores Pharmaceuticals Ltd Business Update Call

Question: Jigar Shah - Elevate Research - Analyst : Got it sir. Thank you for the answer.

Question: Forum Parekh - Bank of Baroda - Analyst : Yeah, am I audible?

Question: Forum Parekh - Bank of Baroda - Analyst : So sir you mentioned that the acquired ANDAs have the potential to clock sales of around INR100 crores by FY27. So could you just explain us the competitive landscape like how competitive is the space how many player market do you expect on an average per molecule and the price erosion pressure and everything.

Question: Forum Parekh - Bank of Baroda - Analyst : Sure, that's helpful. And my second question is on the capacity expansion of where we are expecting like 500 million to 600 million capacity. So by when can we expect this increased capacity to be executed or ramp up?

Question: Forum Parekh - Bank of Baroda - Analyst : Sure, but do we have any visibility right now, like say three to five years down the line we can execute or we can ramp up this capacity?

Question: Forum Parekh - Bank of Baroda - Analyst : Okay. Great. That's helpful. And my last question which is a little broader in terms, like I understand that if we would have set up our own plant, it would have cost us more and would have even taken longer time as compared to acquiring a facility or a unit. But how comfortable I mean is this applying or giving 6 times EV by sales for a generous product in the regulated market? I mean, haven't we little paid more or is this the normal standard valuation that is quoting in the regulated market? Some sense it will give us there? Unidentified Company Representative No Forum, I think as I said in the very beginning this was not a business driven or a valuation was not business driven at all. Because we knew that what is this facility? What is the total asset? It's more asset driven plus a little premium we paid for all the regulatory approvals USFDA approvals plus the ANDAs and everything and the time factor. So it's more it's there is we have not applied any multiple to their sales or to their sort of whatever revenues or whatever EBITDAs that they were, in fact they were not earning at all if you honestly ask me. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 16, 2025 / 5:30AM, SENO.NS - Senores Pharmaceuticals Ltd Business Update Call

Question: Forum Parekh - Bank of Baroda - Analyst : Absolutely, Yeah and just last on this five ANDAs where I understand that three ANDAs can be commercialized soon. Could you give us the status on the two ANDAs I mean are those USFDA approved or by when can they commercialize any timeline there?

Question: Forum Parekh - Bank of Baroda - Analyst : Great, no problem. Thanks, that was helpful. Thank you.

Question: Gaurav D - Ambit Capital - Analyst : Thank you very much for the follow-up. Sir, could you let us know the last inspection date by the USFDA, the UK, MHRA, Health Canada for this facility, would that be possible to share?

Question: Gaurav D - Ambit Capital - Analyst : Okay. So the last inspections happened in FY22 or '23.

Question: Gaurav D - Ambit Capital - Analyst : FY23, got it. And what would be the current cost of debt for Apnar because that's one of the levers for us to refinance at lower cost what would be the current cost of debt would it be in the mid teens

Question: Gaurav D - Ambit Capital - Analyst : 11% got it. And the second tranche cash, from a risk management point of view done it in two tranches so the second tranches are contingent on some, first CB30 approval coming through or some integration any milestone or or now. Unidentified Company Representative Yes, yes, so let me explain. There are two tranches for equity. See, what is happening is some of the debt is from the parent, and as per the ECB guidelines, it is linked to the minimum average maturity milestone being achieved. That's the only thing.

Question: Gaurav D - Ambit Capital - Analyst : Okay, okay. And the debt. Unidentified Company Representative And the debt is more technical. It's more technical?

Question: Naitik Mohata - Sequent Investments - Analyst : Yeah, good morning, sir. Thank you for this opportunity, and congratulations for what I believe is a very lucrative acquisition for us. So just some clarifications on the guidance and the ANDAs that we have acquired. So almost we are expecting INR100 crores to INR120 crores of revenues next year from this facility, and is this on the back of just the three ANDAs which are commercialized, or does this also consider, leveraging our own product portfolio? Plus, at the same time, will the US market be the sole focus for this plant, or as it is a UK and Canada accredited plant as well, is that the geography that we are actually, more keen to enter into?

Question: Naitik Mohata - Sequent Investments - Analyst : FY26, '27, correct.

Question: Naitik Mohata - Sequent Investments - Analyst : Yeah, yeah. That's only partially correct. (inaudible) Yeah, it's only partially answered.

Question: Naitik Mohata - Sequent Investments - Analyst : Right. And, sir, also the focus in terms of geography like US? Unidentified Company Representative Geography initially will be US, but we will also be looking at UK, Canada, and a few other markets because we have a lot of these -- the same products, a lot of all our current portfolio products plus these new products together. As we answered the previous question, the opportunity could be as big as about 4 billion, (Spoken in Hindi) But we will go step by step.

Question: Naitik Mohata - Sequent Investments - Analyst : Okay, thank you, sir. That's very helpful. Thank you. Unidentified Company Representative I think, moderator, Swapnil's line is disconnected. I think we had quite a bit of questions, so we can conclude this call. Or is Swapnil connected?