Natural Capsules

- The company currently has a consolidated debt position of about Rs. 102 crores and aims to maintain it around the same level through FY'26. - There is mention of potential refinancing of existing debt primarily to manage increased working capital needs as topline grows. - No explicit mention of raising fresh debt or equity funds in the near future during the call. - Debt repayment obligations for FY'26 are about Rs. 10 crores (Rs. 6 crores at API subsidiary level and Rs. 4 crores at parent level). - Working capital requirements and incremental needs are expected to be met through internal accruals and refinancing rather than fresh borrowing. - The management appears confident in financing operations without significant new fund raises given the current profitability outlook and internal cash flows.

- The API project capex increased from the initial Rs. 100 crores to about Rs. 167 crores actual, total block capex around Rs. 200 crores including other capitalized expenses. - Increase in capex reflected a capacity enhancement from 17 to 37 metric tons to meet PLI scheme commitments for 3 products. - Current construction and facilities for the API site are designed with regulatory compliance in mind, with only minor incremental equipment costs expected for regulated market requirements. - Two new HPMC capsule production lines are being added to the capsule business, delayed from last year but now on track. - No major additional capex anticipated in the next 12-14 months beyond minor equipment required for regulatory compliance in API plant. - Capital allocation decisions are made by the board based on opportunity and strategic priorities. Overall, focused investments are aimed at ramping up capacity and ensuring regulatory approvals, with moderate incremental capex planned.

- Company-level revenue for the coming year is expected around Rs. 195 to Rs. 196 crore, implying about Rs. 25-26 crore incremental business. - Rs. 15 crore of the incremental revenue is anticipated from the US market, mainly through exports of HPMC capsules. - Another Rs. 10 crore is expected from increased sales in HPMC capsule lines in India and other global markets. - API business revenue is forecasted to rise significantly from marginal Rs. 1.26 crore to ~Rs. 65 crore next year, contributing about 25%-27% of total revenue. - Mid-teen revenue growth (around 15%) is targeted, driven mainly by HPMC capsule business expansion. - HPMC capsule segment revenue projected to grow from Rs. 9 crore last year to Rs. 27 crore this year. - API facility aims for optimal utilization and revenues of Rs. 240-250 crore by FY'28. - Softening raw material costs and regulatory changes in the US support improved profitability and growth visibility.

- FY'26 revenue expected around Rs. 195-196 crore, a ~15% increase from previous year. - Incremental revenue of Rs. 25-26 crore: Rs. 15 crore from US exports and Rs. 10 crore from HPMC capsule business. - API business projected to contribute Rs. 65 crore (~25-27% of total revenue) in FY'26, up from marginal contributions earlier. - EBITDA margins expected to improve to 18-19% on incremental capsule business, particularly from exports. - API segment targeting cash breakeven in FY'26, with EBITDA ~7% and Rs. 9 crore in PLI incentives expected. - Gradual profitability growth driven by better customer profiles, regulatory approvals, and scale-up in API and capsule divisions. - Expected improvement in operating margins for capsule business from ~10-11% to 15%, with regulated markets margins around 17-18%. - Profitability and EPS envisaged to improve as capacity ramps up and new regulatory approvals come through, notably CEP and DMFs by FY'26-28.

- The company has secured firm orders in the HPMC capsule business, providing strong visibility for improved performance in FY'26. - Exports to regulated markets, including the US, are expected to increase significantly, with current US exports around Rs. 5 crore anticipated to grow to Rs. 20 crore, indicating a Rs. 15 crore jump. - Overall, the company aims to reach a revenue target of about Rs. 195-200 crore in FY'26, with Rs. 15 crore expected from the US and the balance growth from other markets and segments. - There is a positive outlook due to the anti-dumping duty advantage in the US market and increased inquiries from US customers. - Ramp-up in API capacity utilization and regulatory approvals are expected to contribute to order execution and revenue growth from FY'26 onwards.