Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Onesource Specialty Pharma Ltd (NSE: ONESOURCE) Q4 2026 Earnings Call dated May. 13, 2026
Corporate Participants:
Abhishek Singhal — Company Secretary
Arun Kumar — Founder and Non-Executive Director
Neeraj Sharma — Chief Executive Officer and Managing Director
Anurag Bhagania — Chief Financial Officer
Analysts:
Rupesh Tatia — Analyst
Nitin Agarwal — Analyst
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, good day and welcome to one source Specialty Pharma Limited Q4FY26 earnings conference call. As a reminder, all participant lines will be in the lesson only mode and there’ll be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Abhishek Singhal.
Thank you. And over to you sir.
Abhishek Singhal — Company Secretary
Thank you Neerav. And thank you all for joining us today for earnings conference call of one source Specialty Pharma Ltd. For the fourth quarter and financial year 2026. We’re pleased to have with us Arun Founder and non Executive Chairperson Neeraj CU and MD and Anurag, CFO of the company who will walk you through the key business and financial highlights of the quarter and full financial year. I trust you’ve had the opportunity to review our results release and the investor presentation, both of which are available on our website as well as on our stock exchange website.
The transcript for this call will be posted on the company’s website within the next week. Please know that today’s discussion may contain forward looking statement which should be viewed in context of the risk inherent in our business. Should you have any further questions after this call, our restoration team will be happy to assist you. I now hand over the call to Arun for his opening remarks.
Arun Kumar — Founder and Non-Executive Director
Thank you Abhishek. Good afternoon everybody. Thank you for joining us today. I’m Happy to report one source is Q4 results with a strong comeback from our previous quarter. This is obviously because we’ve been able to start invoicing our drug device combinations. Most importantly, we have since then received approvals for Canada and one of our partners have got approvals both for Canada and for the US which is a tentative approval. Setting the background for very strong compliance track record capability and getting ready for what we think would be an exciting couple of quarters going forward.
It’s important to note that we had a few days post pattern expiry in the quarter, but having said that we were able to start shipping some goods on the GLPs and as guided earlier in our conversations you would see an uptick on our quarterly performances going forward and we are also using the opportunity today to reaffirm our long term guidance of FY28 which is a $400 million of organic revenue with over 40 with around 40% of EBITDA margins. Important to Note is also that our capacity expansions are going on track.
Second line is now at site and is going engineering and qualification trials and we expect that capacity to be available to us in Q2 in time with increasing demands for the product from emerging markets. At this time we are servicing the Indian market through multiple labels and also the Canadian market where we have now commenced shipments to both partners. All of this will play through over time and then we expect post the Indian approval, several emerging markets will grant approvals to various partners in the other larger emerging markets.
Consequently, we expect volume uptake to be serviced in line with our capacity expansion. At this time we are fully committed to our capacity and we are very delighted with the progress that the company has made not only on the ddcs but across the modalities that we operate in. And before I let the Neeraj and Anurag take over the call, I just wanted to give you an update on the scheme that we had originally announced where we had intended to bring the injectables business of steriscience which is a related party transaction which the family owns along with TPG and the business of Brooks where SteriSigns owns 51% with a publicly listed company, Brooks, which makes a carbo penance.
We in terms you would have probably read our releases where we said that on 26th of February the stock exchanges and the SEBI had approved our scheme, validating the process and the board’s independent committee decision. Having said that, we’ve had several conversations with investors. Most of our large ticket investors and shareholders are fully committed to this transaction and we would have got this across the board without difficulty. But having said that, we had a long tail of smaller investors who believed that there would be concerns on the valuation.
Having said that, and also because the pricing of both, I mean the pricing of the listed company significantly dropped from the intended valuation price, approximately 2,200 rupees a share. We decided that it’s best that we defer this transaction until such time. Both one source delivers on its 400 million 160 and the incoming assets deliver on its 40 million of EBITDA. And then we’ll continue to look at opportunities independently to see how we can progress the business beyond the 400 million and the 160 million guidance.
And I think in all it’s in the best interest that as a group we are very focused on governance and we are also focused on taking all our shareholders together. We haven’t had any significant RPT transactions which has gone through with at least 95% and above shareholders voting in favor of a scheme. We don’t we didn’t get the same comfort this time, although we would have got through majority without difficulties and we decided to pause this for some more time and come back and discuss this further.
Having said that, both units will pursue its growth and we will relook at these opportunities probably in about two years from now, if at all there is a need and the strategic intent is still valid at that time. So for now this is the back burner and one source is very focused on building out his business to its 400 million target which was guided for FY28. With that, I’ll let Neeraj and Anurag take over the call and I’ll be happy to address any questions which are specific to the opening comments I made.
Thank you.
Operator
Thank you very much.
Abhishek Singhal — Company Secretary
Wait, we’ll have Neeraj doing his comment.
Neeraj Sharma — Chief Executive Officer and Managing Director
Yeah. Thank you. Thank you Arun. And very warm welcome to everyone joining us today for our quarter four and the full year results. As Arun Already mentioned, the Q4 has really marked a strong recovery in line with what we had anticipated in line with what we had mentioned. With the revenues at almost US$48 million up almost 47% from the previous quarter. EBITDA also recovered sharply versus the previous quarter which you saw. And this recovery, what really gladdens us is that this recovery was fairly broad based.
All our service offerings really supported this recovery and including the really much anticipated generic summer blue tea India launches. And Arun already mentioned that it’s we were able to do get only this launch is only at the fag end of the quarter. So you know the impact was limited but still, you know it’s a precursor to a strong improvement going forward. And this sequential improvement which we have seen in this quarter is you know we are expecting it to continue and in fact strengthen as we as we ramp up our commercial launches across all markets specifically on semaglutit and I know many of your questions would be around that.
So specifically here we have moved in this quarter from pipeline to real proof and when India opened up our partners were there on day one and across multiple customer brands which is what is really heartening. And today as we speak our customer base total as on end of April holds almost two thirds of the Indian market market share by value of the generic market as it is further improving. Also the you know the approvals which have come across other markets, you know it really they are the ones who are really reflecting this momentum.
We are the first and the only CDMO partner for the first three generic SEMA approvals in all the highly regulated markets, US and Canada. As you saw in Canada specifically, I’ll say with these back to back two approvals, both our partners are all set to bring generic SEMA to the Canadian patients and also with multiple other customers who are due to get approval across various emerging markets. We see a really strong visibility on the commercial ramp up throughout FY27 and while the demand itself is very, very robust and we have a clear visibility on it, we are at the same time ramping up our capacities as you’re well aware and happy to share.
Arun already alluded happy to share that our capacity expansion remains very much on track. Our current line which is today running is you know, fully committed back to back and as a part of the 100 million capex which we are doing. The new line which is, which has been installed already a couple of months back is currently undergoing qualification and will be due for available for commercialization in the next quarter. So which would really, you know, give us that additional, additional boost and help.
At the same time our nascent biologic business which is which also I mentioned last time, it continues to generate a very significant customer interest. Our biologics funnel is at an historic high. In fact in this year we have expanded the funnel almost four times versus previous year and during the year we saw a European biosimilar partner getting added, US Biosimilar major coming on board and we also secured the second project from one of the top three global animal health companies. So basically really a strong set of additions which reinforces the momentum we are building in biologics.
Apart from these DDC and biologics, I would also say our base business of industrial injectables and soft gelatine. Here also there is significant movement which happened during the year, you know, whether in terms of the 10 new licenses we signed, licensing and CDMO deals, we launched 15 plus products, really added customers, you know, which together with our expanding capabilities in our SPD site, you know we will really be deepening meaningfully our specialty injectable offerings. Apart from the business, what also gives me a lot of matter of pride is our compliance track record which remains absolutely stellar.
We saw the year successfully completing 49 regulatory and customer audits and these include who’s who. In fact we had surprise FDA inspection during the year at two of our sites and we completed both successfully getting the eirs. We have renewed our EU GMP certification both at our flagship site as well as our style injectable site. We had unvisa approval coming through the year, you know, which gives us which puts us in pole position to supply to to Brazil as our customers as they start getting approval.
So how we have achieved this obviously through a very meaningful investment in our people and in organization. We have our flagship site where thanks to all the expansion project we have added almost 400 people which is where the bulk of our growth is going to be coming. We are also expanded and deepened the strength of our other organization whether it is in front end in the US or whether it is in operations and in quality. Just so that we are very well positioned on our FY27 and 28. Our commitment to our community as well as environment also was recognized by Ecovadis who have awarded us the bronze medal medal for FY25.
And this is really with a very strong improvement across all categories. We have also been recognized as a leader by National Stock Exchange Sustainability Ratings. So basically a very strong external recognition that this is an area where we are really committed as a company and will continue. Finally, I really want to thank all our teams for their extraordinary commitment and all our customers for the trust they are continuing to place in us. With all the momentum which has been driven by the recent approvals which I just spoke about, our continued progress in capacity, build out and a solid base business.
We are confident of a strong FY27 and also reiterate our FY28 guidance of 400 million revenue and 40% EBITDA margin. Thank you. I hand over to Anurag for his commentary to you.
Anurag Bhagania — Chief Financial Officer
Thank you. Thank you Neeraj. Very warm welcome to all of you on this call today. I’m pleased to take you through our quarter four and full year financial results for FY26. But talking about revenues first in the fourth quarter, our revenues today at INR 4,282 million. It reflects a strong 47% sequential growth driven across all our service offerings supported by India Semaglutide commercial launch towards the end of the quarter on a full year basis, we reported 14216 million INR which is a 2% decline year on year.
It reflects the softer quarter that we had in the previous quarter, you know, due to delayed semaglutide approvals in Canada. On the profitability side, the Q4 EBITDA reported was 919 million which is more than 5x sequentially and the margin expanding by 1,550 basis points quarter over quarter reflecting a strong operating leverage on our higher CSA revenues. For the full year the EBITDA declined about 35% due to delayed some of the side approvals which weighed in on our second half of the results.
As you are aware, there is a significant regulatory change on the new Labor Code during this year. During the course of the year we have already fully provided for this change as an exceptional item in the our current year’s financials. Looking at our PAC and EPS, adjusted PAC for the quarter is about 390 million compared to a loss in the previous quarter. So this quarter we reported loss to profit for the full year. FY26 adjusted pad stood at 739 million. Accordingly our EPS for the quarter is INR 3.4 on a fully annotated basis and 600 through INR 6.5 for the full year.
I would like to highlight that our patent EPS metrics exclude exceptional items and amortization of scheme related intangibles, which is a commentary that I’ve been making repeatedly. Just want to reiterate that these are balance sheet items, goodwill arising from the scheme of arrangement that we had in the past which respect the significant strategic value in the transaction. Goodwill is a non cash item and does not have any bearing on the operational performance and liquidity of the company on the working capital.
We’ve seen a year where we’ve seen certain increases. There are elevated levels, but all of that essentially to prepare for the long launches that are upcoming in the years and we expect this to normalize during the course of the year in FY27. On the treasury side, as highlighted in our earlier calls, we’ve had four notch upgrades during the course of this year ever since we got listed last year and these four notch upgrades are helping us repeatedly take our overall cost of borrowing down. We are trending below 9% today which is 210bps lower than what it was in the prior year.
All our capacity expansions that Arun and Neeraj talked about are fully funded through incremental borrowings both from domestic and international banking relationships that we have. This marks the second annual result after getting listed and while FY26 has been a year we’ve been building with investments and managing the transition to commercial phases. We believe we’ve got a very good foundation in place and very excited about what lies ahead for us in FY27 and 28. We expect to scale meaningfully, building towards the 50% plus ROCE expectation that we have for ourselves during the medium term.
We are committed to creating the long term value for our shareholders and we truly value your partnership. Thank you and I will hand it back To Abhishek for further questions.
Abhishek Singhal — Company Secretary
Neeru, we can open the Q and A now.
Questions and Answers:
Operator
Thank you very much. We now begin with the question and answer. Anyone who wishes to ask a question may press star and one on the touchpoint telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles participants. You may press star and one to ask the question. First question is from the line of Arupesh Natya from Long Equity Partners.
Please go ahead.
Rupesh Tatia
Hello. Thank you. Thank you for the opportunity and congratulations on Canada approvals for semaglutide. I have two, three questions. So first, first question is my understanding is that Brazil has, you know, 28% duty if local manufacturing requirements are not met. So how, how, I mean how are you going to deal with it? How are we going to work around it? And is it a hindrance for, you know, a big growth in Brazil? That is question number one. And then question number two, sorry, our U.S. Deal with NATCO plus Nyla, I think it had profit sharing arrangement as per the press release.
Is it fair to assume that similar arrangements might be there with other customer in major regulated markets? So let’s start with.
Neeraj Sharma
Thank you for your questions on Brazil. I can just tell you that you know that that is applicable only when there is local manufacturing available. As we speak right now there is no manufacturing which is available in Brazil. And also having said that as a cdmo, all our terms with our customers are ex perks. So really any impact of whether it’s a tariff or otherwise, you know, will actually be to the customers to really be taking over. If that clarifies. And to your second question, around, yeah around profit share is, you know, what we have shared in public domain is what we have shared and you know that at, at cdmo neither do we talk about which customers we have or the terms which are with them.
And I hope you will appreciate confidentiality is the biggest part of our deal with our customers.
Rupesh Tatia
Okay, okay. And one other question. In drug device combination business we are I think the service provider. So there is, we just provide the finished surveys. So with that context, I mean can you please explain why our inventories have moved from, you know, 158 crore in March 25 to 440 crore in March 26. I mean that number for non semaglutide business seems kind of large.
Anurag Bhagania
Rupesh, I want to clarify that while our inventories have Gone up. As you would know, we are service providers. You rightly said. But you should know that these inventories are part of our entire production process. So these purchases are fully funded by our customers and fungible. So precisely you know, that is the inventory that we are carrying. There is really no risk that we carry on our inventory that we are carrying. It
Neeraj Sharma
Is paid for by the customers already. Just for you to know because. Because our benefit to our customers upesh is the fact that we are able to combine pool in the demand from various customers and able to get better terms for customers for all the inventory which is fungible among them.
Rupesh Tatia
So anurag this inventory change then will not flow through P and L. Is that fair? The inventory up and down will be adjusted against customer advances. Is that a fair way to look at it?
Neeraj Sharma
You’re right. That’s correct.
Rupesh Tatia
Okay. Okay. Thank you. I have few more. I’ll come back.
Neeraj Sharma
Yes,
Operator
Thank you. Participants, you may press Star and one to ask a question. Next question is from the line of Chirag Shah from White Pine Investments. Please go ahead.
Nitin Agarwal
Yeah, thank you for the opportunity. Sir, I have one question. If I look at H2 results and balance sheet, there is significant amount of investment both in PNL as well as balance sheet without commensurate revenue. So be it staff cost with other expenses like inventory example. So what kind of revenue will this investment support? If you can just share some thoughts, it would be helpful. And secondly, the non CBMO business or the indexable taxable business, what kind of EBITDA margins that we do because it is difficult to analyze it right now.
Anurag Bhagania
Hey Chirag. So as I mentioned earlier to Rupesh, I think what you are seeing is increased elevated level of working capital. These are the. These are as expected and as planned. These essentially are preparation for our significantly large launches. These inventories are fully funded and paid for by our customers and pretty much will go off the balance sheet. The impact on the P and L is practically negligible. It’s only the conversion charges for the service fee that we get which will flow into the financial.
So not a matter of concern from standpoint. What we are also doing from a balance sheet standpoint is there is capacity build out and that’s the. That’s the increase that you may be seeing. So those are the two
Nitin Agarwal
I was referring. I was more even the staff of for the wage expenses and the other expenses. Despite drop in revenue we have seen a increase in both line items and that could be because of the cost that we are varying on expectations of potential revenue. So what I’m trying to understand is up to what kind of revenue scale this top cost and other expenses can support and beyond that there will be further investments that will be required.
Neeraj Sharma
So I think this is just that this is the investment which is being put in the entire expansion of capacity. Whether it was earlier the capex which we said but this OPEX is basically to support that expansion and that is what we have said it is for supporting our guidance of 400 million revenue out of it. The DDC part where the increase is happening is very significant and that’s where we already said the second line is already here and second line is undergoing qualification right now. So there is OPEX associated with it and that’s when it comes online from next quarter onwards and similarly that third line which will be coming online later in the year so I think that’s what you see and the revenue guidance we’ve already given which is going to be coming out of this expenses.
Operator
Thank you. I’ll request to come back for a follow up question. Participants you may trust RN1 to ask the question. Next question is from the line of Nitnagarwal from Dam Capital. Please go ahead.
Nitin Agarwal
Thanks for taking the question on the, on the capacity. Just remind us on you know the timeline for the capacity expansion in BDC and by when do you see these incremental capacities available and if you can give also some sense on by when do you see reasonable utilization of these capacities in your plan?
Neeraj Sharma
Yeah Nitin hi. So thanks for your question. So if you see our as I mentioned the current line is currently completely, completely busy on doing the CSA the commercial manufacturing for both Canadian partners as well as our in multiple Indian partners. The new line which is currently undergoing qualification, it was installed earlier in the year and it’s now undergoing qualification. That line will be available from next quarter onwards you know and that’s what will a it will ease pressure on the existing line and as and when you know customers keep moving because that is also the line which has the capability of going to a significantly larger batch size of 500 liter which actually is in the interest of our customers and us to be able to churn even higher output from that line.
And once the third line because you know that we are going to be adding two lines, two additional lines this year and as the year you know will be ending we’ll be having the second new line. So by end of the year we will have three lines installed and you will see as we have said, you know the sequential improvement in both revenue and EBITDA quarter on quarter. That sequential improvement actually is built on basis of these new capacities being available. Because as I mentioned in my note, we have a very clear visibility of a very robust demand from all the markets which are either already where the approvals are there or the approvals are going to be coming.
And with this capacity expansion, that demand will keep getting serviced and that you will see shown in our sequential quarter on quarter improvement. And you also know that there is additional line which will be coming next year. But I’m not manufacturing that, I’m just staying put with three lines which will be ready and which will be visible by end of FY27.
Nitin Agarwal
We have 40 million in the first line. And how many cartridge capacity will be there by the end of the year available with us?
Neeraj Sharma
Yeah, yeah. So Nitin, I think last time, if you remember, we explained that our capacity, you know, way to look at the capacities in the number of sterile days which are available as a sterile injectable company. And that is, you know, roughly, we look at roughly about 225 odd days of sterile manufacturing available to us. And in this, it is then a function of batch sizes. Now if we do a 200 liter batch size, we can do roughly 60 or 1000 tons per day. And if we were to take the batch size to 500 liter, that number immediately goes up by two and a half times, as you can imagine.
So from the same line the output can vary quite significantly and increase quite significantly depending upon the batch sizes. So the customers who will move to the batch sizes will be able to get a much higher output from us and the same will be applicable to all the three lines. So you can imagine that with 225 style days for us on one line and you multiply by three, give you the 675 watt days which will be available to us once all the three lines are up and running, making commercial. And that’s the best way to look at our capacity.
And also at the same time I will also tell you that what we are really good at and what our customers are really valuing us for is all the capacity, which I am telling you is not only fulfilling, it is end to end, including assembly. So we are offering our customers the full finished, packed product.
Nitin Agarwal
Secondly, on the biologics KDMO business. Nitin, sorry, your audio is
Operator
Coming muffled. Can you please speak for the handset?
Nitin Agarwal
Sorry. Is it better?
Operator
Yeah.
Nitin Agarwal
On the biologics business we probably made a lot of progress on the funnel, but what we see in the business now in terms of the pipeline, the way it’s building out. When do you see this business beginning to contribute to a meaningful proportion of consolidated for the business? By what time does it begin to happen?
Neeraj Sharma
So Nitin Biologics is a really very exciting business for us. As you see, there are so many global tailwinds which are supporting, including the recent changes in the guidelines by FDA as well as Europeans which have opened the biosimilar business dramatically expanded the size of the biologics business, the biosimilar business globally and obviously the access and the attractiveness of CDMOs like us because of the comparative cost which we offer, because of the agility and time to market which we offer has made us really, really attractive.
So while the tailwinds and the funnel is very strong, what happens in biologics is it’s a fairly long gestation in terms of closing the agreement. So while the funnel is really strong, we see agreements getting signed and you will see that happening over the next full FY27 and FY28 for you. You will already see a meaningful contribution coming in in FY27 and FY28. But the real kicker is once the commercial manufacturing starts for biologics, which is I would say still, you know, beyond the current time horizon which you are looking at FY28, we see the commercial manufacturing happening 29 onwards.
How however, the contribution from biologics will already be meaningful in FY28.
Nitin Agarwal
Second, one last one, Arun, if it is probably, if you can answer that, we talking about F28 guidance which we’ve been holding on to for the last couple of years. Now, if you look at one source as a business qualitatively, how should one think about the business beyond F28? If you can give us some. How should we visualize the business scaling up beyond that?
Neeraj Sharma
I would request Arun to answer. It’s a good question.
Arun Kumar
Thank you. Good questions. Hi Nathan, on your question, basically there are several modalities, right? There’s a lot of conversation and noise around the DDC switch which of course is an important segue to our 400 million. But we have several modalities including our soft shells injectables and the biologics which is an ascent build out. As Neeraj said, that will take a little time before. We’ve got a lot of contracts signed up, early stages and a lot of RFPs issued. But you know, material conversions will take at least another two, three years and we already see the need to expand capacities in that area.
But we believe that the softgel in our 400 million target we’ve alluded to the fact that our soft shells and injectables business are trending closer to the $100 million mark. We see a lot more growth opportunities there. We’re expanding more capacities. Neeraj alluded to the enhancements of capacities in our injectable space. We have a fourth line coming in unit two which is a dedicated injectable capability with several features including an SCD with high viscosity pre filled syringes. So there are several legs beyond $100 million which we are invested heavily now and we brought in a lot of new capabilities in our industry and market access.
So we are very confident those businesses will be will grow quite smartly in the next many years and should give us much more leg up on the beyond 400 growth. Of course the stere science assets would have added to the whole story, but that’s for another day. But having said that, the 400 million organically will also have some inorganic elements, not necessarily the steriscience sets and clearly they would also. That’s a pivot that we’ll continue to look as we create beachheads internationally.
Operator
Thank you Nitin. I’ll request to come back for a follow up question. Next question is from the line of Kunal Lakhan from clsa. Please go ahead.
Nitin Agarwal
Yeah, hi. Thanks for taking the question. It’s a little more elementary question with respect to SEMA Blue Tide, do we have like a minimum commitment on volumes from our clients say either on a quarterly or an annual basis irrespective of whether the clients are able to sell their inventory in their respective markets or not?
Neeraj Sharma
Yeah. So I can tell you that you know our right now the biggest challenge actually for the customers is access to capacity and for them to secure this access, customers have done a capacity reservation with us and that capacity reservation includes blocking capacity and committing to pick up that capacity both by paying upfront fee as well as take or pay kind of contract. So you know right now as that we are we are only looking at how we can service this demand then worrying about whether they will be able to sell or not.
Nitin Agarwal
Sure, I get that. And once say the markets like you know Brazil and other markets open up right going into say FY28 or 29 red, would these terms be different or you see similar terms in terms of access to supply or access to capacity still remaining a priority with these clients.
Neeraj Sharma
See it again depends how the demand develops. But I can tell you considering right now the way we have seen India pick up, we are Seeing even the brand in other markets where the expansion which is happening continues to go beyond, you know, beyond what was anticipated and the demand supply gap will continue to be there at least for next two years. So you know, so while I cannot forecast any future, but I can tell you that certainly over our next two year period there will be a challenge more, I mean demand will be, will be robust and the gap will be more from supplies than the demand.
Nitin Agarwal
Understood, very helpful. Thank you so much.
Operator
Thank you. Next question is from the line of Aniket Singh from Kotak. Please go ahead,
Unidentified Participant
Sir. Firstly, on the Semaglutide Canada opportunity, when do you expect approvals for your other clients in the Canadian market? Do you expect them to come in by the end of FY27 or maybe sometime earlier or beyond FY27?
Neeraj Sharma
So you know, honestly that’s a question which is, you know, we are not directly involved in managing the regulatory strategy or discussing with the regulatory agencies. But I think as we have all seen in public domain, that there would be more approvals which will be coming in over the next few quarters. So now when exactly these are going to be there, it’s very difficult to anticipate. But you saw Health Canada talking about that there are more approvals which are currently in the pipeline.
Unidentified Participant
Got it sir. And secondly sir, you have given some information on few row markets in your presentation. So can you give some more thoughts on how big could be the market in Brazil and the few latam and select row markets that you’ve mentioned in your presentation?
Neeraj Sharma
So Brazil, you know, today if you look at iqvr, Brazil is the largest market outside of North Americ America for semaglutide. Right? So it’s a large country, you know, significant population and a country which is very focused on weight reduction. So it is going to be a very significant market. And if you see there are other markets which are fairly large, whether it is Turkey, whether it’s because this is a factor of population size and you look at these markets, you know Turkey with 80 million people, you know Saudi Arabia, again, you know, large, large populations.
So these will be interesting. But also you need to see that many of these markets today, whether it is Southeast Asia, whether it is Latin America, the brand has not been available. It has been a very, very constrained supply because brand has focused only on US and Europe and the developed markets. So these markets will really grow. So there are no clear numbers available simply because the brand has done a very, very poor job of even supplying these. The clear example was India which is the Second largest diabetic population in the world.
And the brand got launched months back and not years back as it should have been. And you see the growth. So I think that’s how we will have to wait and see. But there is a very significant market out there. In each of these emerging markets. We have customers. In all these, we have a very strong customer base which will be covering all these markets which are opening.
Unidentified Participant
Got it sir. And so lastly while you have given your FY28 guidance but now as a few of your customers have already got Semaglutide approval in few markets, do you want to give some color on full year FY27 numbers? Maybe some inclination?
Neeraj Sharma
Yeah. So I think we, as we said, you know we will, we’ll stay right now with FY28 guidance while we continue to progress with the commercial launches, expanding capacity this year. So this year right now we are iterating FY28.
Rupesh Tatia
Thank you.
Operator
Thank you. Next question is from the line of Dr. Karthik Bani from Bajaj Life. Please go ahead. Doctor Banay. Can I request it unmute your line and proceed with your question. We move on to the next participant. Next question is from the land of Hrithika from Valuequest Investment Advisors. Please go ahead.
Unidentified Participant
Yeah. Hi sir. Thank you for taking my question. First question is on Brazil market. As with Anvita’s website, we see only handful of applicants which are currently under review. Though there would be 17 applicants. Could you help us understand of these top filers, what would be our partnership number? Though we’ve said we have five partners. But out of these top applicants, where would our partnership share be?
Neeraj Sharma
So Ritika, again as I said, this is not, you know, this is not information which is in public domain. You know what Anvisa is not given. It doesn’t give details on which ones are currently under evaluation. What are the names who are. So I can only tell you that our customers are fairly variable bunch. We have some of our global generic company partners who have filed in Brazil. We have got Brazilian companies who have filed in Brazil. We have got regional strong leaders who have filed. So it’s very, very difficult to really understand where they are.
But as and when the approvals will start coming, our customers should certainly be in that first wave.
Unidentified Participant
So second question is on Saudi Arabia as a market. Three months back we had given out the notification of approval of the drug in Saudi Arabia. Semaglutide. Why would there have been delay in launches? Could you help us understand?
Neeraj Sharma
No. So here it’s not delayed because the fact is that while Saudi Arabia there was no patent. You are aware that there was a patent in India, right? So that’s the, that was a factor and not not the Saudi pattern. Now that you know all that is, you know freedom to operate is there. So as we have said the Saudi launch is imminent.
Unidentified Participant
So last question is on customer advances. What would this number be currently on our books versus 250 crore last quarter
Anurag Bhagania
Ritika the number would likely be at almost the similar levels. There’s not significant change on that number.
Unidentified Participant
Sure. Thank you so much.
Operator
Thank you. Next question is from the line of Aman VIJ from Astute Investment Management. Please go ahead.
Unidentified Participant
First question is on the biologics part. You, you explained how FY27 and FY28 would be good growth years for the business. I just wanted to understand what is the number in terms of revenue and say ebitda loss for FY26 and when do we expect the break even in this biologics business.
Neeraj Sharma
So I think we have mentioned that earlier the stage of evolution we are in right now, you know, we don’t really break it down in that granularity business wise because the modalities our customers take are all together. So and as you know, right as I mentioned that cdmo our biggest, biggest asset is actually confidentiality of our customers. So we don’t really break down business wise revenue or any other, any other financial.
Unidentified Participant
If you can answer which year can we expect the business to break even and start contributing in terms of profitability Also
Neeraj Sharma
As I said, you know it’s you know whether you know what would be the profitability whether it is breaking even already or not. You know, I will not
Unidentified Participant
Get
Neeraj Sharma
Into that. But as I mentioned that it’s a business which is going to be expanding, expanding year on year and you know we’ll already contribute meaningfully to our FY28 numbers and beyond. In fact that is a business which has got very long Runway for us beyond FY28 because the commercial manufacturing is going to be starting beyond FY28 and that is a very, very meaningful growth on these numbers. I mean just to let you know it’s a very strongly strong EBITDA business
Unidentified Participant
On soft gelatin part in my understanding the new capacities are already online. So you talk about say capacity utilization and when can we see start seeing good growth and higher capacity utilization in that business.
Neeraj Sharma
Yeah, so this is as you know that last year we have expanded the capacity and since then we have onboarded new customers. We continue to onboard board in fact, thanks to all the challenges in having capacity available for European customers and who are really coming to us so that south generating capacity, we are actually seeing an increase and as we have said by most likely by end of this year or if not next year, we would have no real, no real capacity available beyond. And that’s why if you also know that we have a limited period agreement, transition agreement with Stride, then we will be expanding into our own site and that’s the time where we, you know, the next set of expansion on the capacity will happen.
So by that within the, within the current period, we look at this capacity to be fully utilized.
Unidentified Participant
Final question on Sema side, you explained how the, based on batch size, whether it is 200kl or 500k the capacity becomes 2.5x. So in your.
Neeraj Sharma
It’s liters. It’s only. It’s
Unidentified Participant
By 200 liters. Yes, yes, 200 liter to 500 liter. So in your understanding when do you expect this to happen? For the, at least the first original line?
Neeraj Sharma
Yeah. So our original line, the current line, we can’t go beyond 200. That’s why the new lines which we have done, you see it’s again the arc, the existing line predates all the exuberance and excitement around JLP’s and, and where the market was. So that line can do maximum 200. It’s the new line, all the new lines which we are doing which can go, you know, even up to between 750 to 1,000 liters is what, where we are going to be changing.
Unidentified Participant
And for the first new line, when do you expect this to happen?
Neeraj Sharma
So it’s a process, you know, customers already working on it, you know, we’ll keep updating you but it’s not, it’s not a long term plan. It’s, it’s going to be happening sooner than, than we anticipated.
Operator
Thank you. Thanks
Unidentified Participant
For answering the question.
Operator
Thank you. Next question is from line of Dr. Karthik Vani from Bajaj Life. Please go ahead.
Nitin Agarwal
Hello, can you hear me now this time?
Neeraj Sharma
Yes, yes, please go ahead.
Nitin Agarwal
Yeah, okay, thank you. Yeah, thanks for the opportunity. So I would like to know more about the oral semaglutide opportunity and how would that impact our business.
Neeraj Sharma
So I think, you know, it’s, it’s, it’s, it’s a good product and you know we are very clear that there are, there are patients who just cannot take injections because they have a needle phobia, you know. And for them oral tablets are an absolute relief. Having said that, you know, orals have a challenge of efficacy. They still don’t match the efficacy of injectables. Orals also require a daily dosing, what we call very high pill burden. You know, and obviously with. With the daily dose, the side effect challenges also increase.
So with all in mind, they are a very good solution for people who really need and can do with lower weight loss and the expectation.
Operator
Can I mute your line, please? Yeah, I’m sorry.
Neeraj Sharma
Yeah. So we don’t expect, you know, the orals to be taking about anywhere between 25% to maybe a third of the total market. So the market will overwhelmingly stay as injectable. Simply look at the pipeline of product products, the other GLP products which are coming, which are overwhelmingly injectables.
Nitin Agarwal
Okay, thank you. And my second question is that you mentioned Canadian partner. Would you like to clarify if the Canadian partner is Indian company or outside India company?
Neeraj Sharma
I think we have said, right, that it’s one company in public domain, which is Dr. Reddy’s. So. And the second partner is also, you know, very clear, we have put in public domain. Our partner is Orbicular, has a partner in one of the largest Canadian companies. So I think there are only two companies who are approved. So you can, I’m sure, figure out which ones are those.
Nitin Agarwal
Okay, thank you very much. Thanks a lot.
Operator
Thank you very much. Ladies and gentlemen. In the interest run, that will be the last question. I’ll now hand the conference over to the management for closing comments.
Neeraj Sharma
Yeah. Thank you very much for taking time and asking such insightful questions. Really, really appreciate the interest and we look forward to speaking to all of you next quarter. Thank you very much.
Abhishek Singhal
Thank you.
Operator
Thank you very much. On behalf of one source Specialty Pharma Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you.