Alivus Life Sciences Lt (NSE: ALIVUS) Q4 2025 Earnings Call dated May. 16, 2025
Corporate Participants:
Soumi Rao — Investor Relations
Yasir Rawjee — Managing Director and Chief Executive Officer
Tushar Mistry — Chief Financial Officer & Senior Vice President
Analysts:
Ahmed Madha — Analyst
Tarang Agarwal — Analyst
Nitesh Dutt — Analyst
Nitin Agarwal — Analyst
Harshal Patil — Analyst
V. P. Rajesh — Analyst
Alankar Garude — Analyst
Unidentified Participant
Sanjay — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Alivos Life Sciences Ltd. Formerly Glenmark Life Sciences Ltd. Q4FY25 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity. For you to ask questions after the presentation concludes. Should you need assistance with the conference call, please signal an operator by pressing Start and zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Soumi Rao from Alivis Life Sciences. Thank you. And over to you, Ms. Nao.
Soumi Rao — Investor Relations
Good morning everyone. I welcome you all to the earnings call of Alaiws Life Sciences Limited for the quarter and year ended March 31, 2025. From Alivis Life Sciences, we have with us Dr. Yasir Raoji, our MD and CEO and Mr. Tushar Mistry, our CFO. Our board has approved the results for the quarter ended March 31st, 2025. We have released the same to the stock exchanges and updated it on our website. Please note that the recording and transcript of this call will be available on the website of the company.
Now I’d like to draw your attention to the fact that some of the information shared as part of this call, special information with respect to our plans and strategies may contain certain forward looking statements that involve risks. And these statements are based on current expectations, forecasts and assumptions that are subject to risks which could cause actual results to differ materially from these statements. Depending upon the economic conditions, government policies and other incidental factors.
Such statements should not be regarded by recipients as a substitute of their own judgment. The Company undertakes no obligation to update or revise any forward looking statement. Our actual results may differ materially from those expressed in or or implied by these forward looking statements. With that, I invite Dr. Yasir Raoji to say a few words. Thank you. And over to you, Dr. Raoji
Yasir Rawjee — Managing Director and Chief Executive Officer
Shami. Thank you. Good morning everyone and welcome to our Q4 and FY25 earnings call. Before we get into the company’s performance for the quarter, let me briefly touch upon the broader industry landscape. So the global industry continues to evolve around structural changes because of ongoing supply chain shifts, geopolitical tensions and regulatory reforms in US drug pricing and also the rising demand from emerging markets.
Our growth is supported by increasing outsourcing, rising demand for specialized APIs and efforts to diversify supply chains. Additionally, the industry is making meaningful strides in adopting sustainable manufacturing practices and next generation technologies. So coming to Alaibis and our quarter performance, we’ve made pretty strong progress this quarter reporting revenues of 650 crores which is a year on year growth of 21.1%.
So Q4 witnessed broad based revenue growth coming from all regions. Now GPL and non GPL business grew at 31% YoY and 19. Respectively, the generic business posted a growth of 22.6% YoY while the CDMO business also grew 22.6%. From a geographical perspective, growth was well distributed with India, Europe, Japan and ROW all playing a significant role in this growth. Moving on to our profits for the quarter, our EBITDA margin for the quarter was 32.1% up 520bps YoY and 80bps QoQ, primarily driven by a more favorable product mix coupled with product launches, especially in the ROW markets. Coming to our full year performance, GPL grew by 8.8% YoY whereas non GPL business grew 6.3%. Sales revenue growth excluding other operating income remains at 7.1%. On an overall basis we reported revenue of 2,387 crore reflecting a YoY growth of 4.5% in line with our FY25 guidance. Notably, we were able to maintain margins at 30% YoYo despite the absence of PLI benefits this year, a testament to the overall resilience and efficiency of our business. From a geographical standpoint, India, Europe, RW and Japan, like I said earlier, contributed to full year growth with Japan in particular reporting remarkable growth, although it is on a small base. That said, we expect this positive momentum to continue. Another encouraging development is the headwinds in the latter market have started easing gradually with early signs of improvement now visible. On the other hand, the US market is experiencing a slower than expected growth owing to a bunch of challenges externally as well as a little bit of destocking with our customers, so we believe that this will turn around in FY26. Our CDMO performance remains soft during the year primarily because of the cyclical nature of demand in this segment. Project number four is gradually gaining traction and the fifth project is expected to commercialize in the second half of this year. I’m also pleased to share that our unkleshwar plant received the EIR following the routine GMP inspection by US FDA at the end of January this year. Our pipeline remains robust with 561 DMF and CEP filings globally as on March 3rd. 31st 2025 the high potent API portfolio remains on the development path with 24 products now in the active grid representing a total addressable market of $49 billion. Of these, seven products are validated, five products are in advanced stages of development and the remaining 12 products are progressing through various stages in lab development. Looking ahead at FY26 we expect volume growth in mid teens. However, given the pricing pressure, we expect the revenue growth to be in the high single digits. As it stands, the Q1FY26 as we see now are Q1FY26 trends as we see now are encouraging from a growth perspective. So we will take stock of the whole year performance on a quarterly basis as things develop. We would like to reiterate that margins will continue to be in the 28% to 30% band in the foreseeable future. With this, I now turn the floor to our CFO Mr. Tushar Mistry who will walk you through a detailed financial performance for the quarter.
Tushar Mistry — Chief Financial Officer & Senior Vice President
Thank you Dr. Yasir. Good morning everyone. Welcome to our Q4 and FY25 earnings call. I would like to briefly touch upon the key performance highlights for the quarter and year ended 31st March 2025 before opening the floor for questions and answers for Q4FY25. Our revenue from operations stood at rupees 650 crores, a growth of 21.1% year on year and 1.2% on sequential basis. The gross profit for the quarter was at rupees 367 crores, up 23.2% year on year and 2.9% sequentially.
The gross margins for the quarter stood at 56.5% driven by better product mix. EBITDA for the quarter was at rupees 209 crores up 44.2% year on year and 3.8% sequentially. EBITDA margin for the quarter was at 32.1%, up 520bps year on year and 80bps sequentially driven by higher gross margins coupled with new product launches and the PAT for the quarter stood at rupees 142 crores with PAT margins coming at 21.8%.
Moving on to the full year numbers, revenue from operations for FY25 was at 2387 crores, a growth of 8.8% in GPL and 6.3% in non GPL business which led to an overall sales growth of 7.5%. Normalizing for the PLI impact. Gross profit for FY25 was at rupees 1306 crores and gross margins were at 54.7%. EBITDA was at 717 crores with EBITDA margin at 30%. Maintaining steady margin throughout the year, PAT was at 486 crores with PAC margin of 20.3%. Looking at the therapeutic mix, CVS and CNS continue to lead the growth during the year with both therapies contributing 55% to the top line. R&D expenditure for FY25 was at Rs. 81 crores which was 3.4% of our sales. For the quarter it was at rupees 24 crores. Touching upon the balance sheet and cash flow statements starting with cash conversion cycle, working capital was higher during FY25 Act 192 days due to increase in better days. As indicated earlier, GPL credit days have increased as per the agreement. The fewness of GPL business towards the second half of the year results in higher data days at the end of the year. We believe this trend should continue going forward. Coming to capital expenditure, Capex for quarter was at rupees 47 crores while for FY25 was at rupees 166 crores. We plan to incur about we have a carry forward of about 190 crores of capex as we had indicated earlier that we have about 300 to 350 crores of capital layout in FY25 so we have a carryover of about 190 crores plus. Additionally we are planning to incur another 350 to 400 crores in the current year for which we have the CAPEX approvals from the board. These capexes include the Greenfield expansion in Sholapur, expansion in Uncleswar as well as the new R D center that we are planning near Mumbai. We continue to remain a net debt free company and I’m happy to inform you that we have generated strong cash flow from operations of rupees 233 crores in FY25 with cash and cash requirements including short term investment of Rupees 549crores on the books as of 31st March 2025. In conclusion, I would like to reiterate that we remain optimistic about our future trajectory supported by a favorable demand environment and a healthy order book. With that let us open the floor for Q and A. Thank you.
Questions and Answers:
Operator
We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on your touchstone telephone. If you wish to remove yourself from the question queue you may press Star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles us. First question comes from the line of Ahmed Madha, Unified Capital. Please go ahead.
Ahmed Madha
Yeah, thanks for the opportunity. Good morning. Firstly, on the capital allocation in Quebec, obviously we had very high payouts till last year and the change in ownership. Is obvious we’ll focus on growth. So in that context could you give some idea on how are we thinking about capex for the next three years? Also it seems we have pushed out 2650 KL capacity line from FY27 to FY28. Wouldn’t it be more logical to fasten up the capex? Your thoughts please sir.
Yasir Rawjee
Okay, so basically let me take the last part first. As far as pushing out the volume expansion. See we’ve always been calibrated with respect to. So while we thought we would need around 2600kl by FY27 we feel now that we can push it out. And the reason for that is that we have done a lot more brownfield expansion especially on pharma capacity both in Dahij as well as Uncleswar which will be completed this year.
So given that kind of pharma capacity we’ll have a pretty good Runway for the next couple, maybe even two, three years going forward. So then what happens is that our three year plan basically has to be done largely completed this year which as Tushar just explained is a carryover from FY25. But then it will be pretty aggressive in FY26 to complete these brownfield expansion plus the Sholapur first phase and then hopefully we’ll get our R and D center built out as well.
So that should give us pause to have an aggressive expansion because Sholapur will give us sufficient capacity on the intermediate side. Plus we can trigger an inspection by taking some validations of some key APIs. But then on the commercial side we can expect both the unclear as well as the hedge to continue to service the business. Try to assume our Capex will be 400450 crores in that range. No, it will be upwards of 550. So you add 190 to 350. 400. So we are, we are around 550ish crores. 550 to 600.
Ahmed Madha
Okay. And could you explain how our product pipeline is shaping up for FY26? Any new major product launches in the pipeline? Also our HPAPI pipeline is building up nicely as you explained in the presentation. So. Can we expect anything major to come out of this and contribute to revenues in the next 12 years?
Yasir Rawjee
To see the launches that we have seen in FY25 as well as what is coming up in FY26 are products that we sort of developed and feeded with customers about four, five years ago. Okay. This was keeping in mind the patent expiration dates. Okay. In various markets. So that is coming along as expected. Right. As far as this portfolio that we are developing goes, patent expiries are sort of starting off from calendar 27 onwards. So we should see in FY28, you know, the launches from this pipeline should start from FY28 onwards.
But then there will be launches like we had this year that we had last year, then we’re going to have this year and so on. So those will keep coming because we’ve had, we’ve been developing the pipeline now pretty aggressively for the last six years since the company became independent from, you know, split up from basically from Denmark.
Ahmed Madha
How do you assess the impact of changes happening at the industry level in the near term? Specifically the tariffs from usa? What is your judgment? And in this context, are we being conservative, seeing high single digit growth or is it fair to expect that similar to FY25, 26 will be high single digit revenue growth?
Yasir Rawjee
Yeah, so like we said, we are already seeing a volume growth of mid teens. Right? That is very clear that we are seeing that. But then there is erosion right in the market. So depending on how we are able to manage that erosion, we should be definitely in the high single digits to be able to drive the growth as well as the good news is that Q1 is also looking pretty promising. So the momentum that we’ve had in the last two quarters continues.
Ahmed Madha
Okay. As far as the industry goes, right. Except the US things are pretty much where they were last year. So on May 7, three large industry organizations, this is the Pharmaceutical Research and Manufacturers of America, the Biotechnology Innovation Organization and the association of Accessible medicines. These are three large industry bodies in the US that made a representation on May 7 to the US government basis of invitation. So this was solicited by the commerce sector.
Tushar Mistry
Okay. And so they’ve made a pretty strong case for basically not having tariffs because they have argued, I think pretty successfully that it would basically entail a big supply chain risk to the pharmaceutical supply chain and would put RD investment also, you know, on the back burner. So with all this plus, you know, so they, they’ve also made an alternative suggestion to the Trump administration. Right. On having, you know, in place of tariffs, other incentives.
Right. That would help to, you know, drive local manufacturing in the US So see that it’s still out there, the jury is still out there in terms of how the US government takes it. But given the fact that there is a fairly strong internal push by industry bodies in the US itself not to have tariffs, we think that the outlook from the US will remain quite, quite positive. So yeah, maybe, maybe it will lead to a small upside, but that remains to be seen.
Ahmed Madha
Last question from my side. There is slight receivable bump up in at the end of March balance sheet. Any comments on that?
Tushar Mistry
Yeah, but as I explained in my opening remarks, landmark comma has increased number of days as per the rewind. So the entire 200 crores that you see as a bump up is all on account of that. We don’t see any challenges as far as the non GPL business is concerned. That remains steady.
Ahmed Madha
Could you elaborate more on the agreement? What will be the number of days for the GPN panel GPM business?
Tushar Mistry
That will be upwards of 150 days of as per the agreement. But also what happens is since the GPL business is more skewed towards second half, the end of the year looks a bit skewed as far as the number of days is concerned for GP year also.
Ahmed Madha
Got it. Thank you. That’s it from my side.
Operator
Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Dilip and Indojel Minister. Please go ahead. Mr. Dilip, please go ahead with the question. Dilip, please unmute yourself and go ahead with the question. Since there is no reply from the line of Mr. Dilip, we move to the next. The next question comes from the line of Tarang Agarwal with Old Bridge. Please go.
Tarang Agarwal
Hi, good morning and congratulations on a very strong Q4. Just a couple of questions. One, what was the volume growth for FY25? And second, from a FY26 standpoint, does the OAI on Glenmark Indoor impact your business? Thanks,
Yasir Rawjee
Taran. Just repeat the last part, please. Again, from a FY26 impact, does the Glenmark Indoor OAI impact your volumes? Okay, so we’ll just come back to you on the volume growth. It’s been 10%. The volume growth in FY25 has been 10%. And with regard to, you know, the OAI status of the indoor site for GPL, I don’t think it’s likely to impact us in any way.
Tushar Mistry
Okay. I mean, because we supply pretty uniformly to all the GPL sites and, you know, I’m sure GPL will be working to sort this out, but it has no impact on demand for our APIs.
Tarang Agarwal
Okay. Just one more question, Doctor. I mean, you, in your initial address, you did talk about some softness in the US in terms of pricing, but I mean, the broader sense that we are picking up is it’s a fairly buoyant market currently, especially the Zendix space. So where is the disconnect and what’s driving your slightly somber outlook on the us?
Yasir Rawjee
It’s a good question. But I mean, look, there’s a mix of things here, right? I mean, one is, see, when I talk about softness, I’m particularly talking about, you know, our portfolio because it’s a higher end. There are newer molecules that we are launching, and so there is a fair chance of more erosion Right. On those set of molecules from our customers. That’s what I’m sort of referring to. I do agree with you that on an overall basis, things have pretty much bottomed out. Right. But so far, so good. We’re okay. But on pricing, we do expect a little bit of push from our customers.
Tarang Agarwal
Got it. And the last question, I mean from an overall CapEx standpoint, how much is your budget for the RD center specifically and will it all be, I mean, how confident are you to deploy the commitment that you’ve laid out in FY26 itself for the overall CapEx numbers that have been out there?
Yasir Rawjee
So on R D, on the R D center, we should be spending somewhere between 70 to 80 crore to build that out. Okay. On the overall, yeah, it’s a bit challenging. But then most of the projects have started off. So the brownfields in Unkleshwar, the brownfield in the hedge is well underway. Sholapur is also coming along pretty well. And These are the two, the three big items on the manufacturing side that consume the CapEx. Right. And then like I said, R and D will be about 70 to 80 crore.
So we should, you know, do most of this 550 crores. Right. And we need to really, it needs to happen.
Tarang Agarwal
All right. And so last question. I know this is many of my last, but definitely last, if you could give us a sense on what’s happening on iron sucrose.
Yasir Rawjee
So you know, we don’t talk about products. Taran particularly. Right. But since you asked particularly, it’s being reviewed, so it’s under review.
Tarang Agarwal
Okay, thank you. All the best.
Yasir Rawjee
Thanks.
Operator
Thank you. Next question comes from the line of Nitesh Dutt with Berman Capital. Please go ahead.
Nitesh Dutt
Hi, good morning and thanks for the opportunity. So you mentioned that you have visibility of meeting kind of volume growth, but because of erosion you see value growth at say high single digits. So are you seeing more than 5 to 6% erosion year on year and has it accelerated recently? And how is the overall competitive scenario in your set of products? Is it leading to more erosion at Okracki?
Yasir Rawjee
See, typical nitesh, we see about 4 to 4.5% of erosion on our, on our pipeline. Now competition is there. Right. But then because we are operating largely in the regulated market space. Right. That competition is not an immediate problem. Right. It could become a problem, you know, a year and a half. To two years out. So on the newer products, you know, we expect to see some erosion but not very significant. So it would be. It would be in this 4.5% kind of range.
Nitesh Dutt
Got it, thanks. And secondly, you expect mid teens kind of volume growth going forward. FY25 was at 10%. So this incremental delta, fair to understand it will mainly be driven by newer product. What kind of visibility and conviction you have that volume growth can get accelerated by this amount?
Yasir Rawjee
I’m not sure I got the question on the acceleration.
Nitesh Dutt
If you don’t mind. Could you please repeat the question? I just asking Volume growth, our typical volume growth. Sorry, for FY25 it was 10% you mentioned. And going ahead, you are guiding for 15% kind of volume growth. So just wanted to understand where this delta will be driven from. Is this mostly from new products or do you expect your existing set of products also to grow faster than the current 10% also?
Yasir Rawjee
So it’s both nitesh. Okay. I mean the new product, like I said, we’ve had quite a few launches in this last year, but then not all markets opened up last year. So we expect a few more markets to open up in FY26 that will drive volume. Plus we have a few more launches also new launches in FY26. So yes, the incremental volume will come from the newer launches. But our base business is also pretty solid and that continues to have pretty nice volume growth as well. So we are pretty confident that we’ll get to this 15% volume growth.
Nitesh Dutt
Got it. Sir, what’s the outlook for your CDMO business and any guidance there as well.
Yasir Rawjee
So see cdmo, like we’ve explained in the past also, right. It bases three commercial products that continue to drive the volume. The fourth product got started off with commercial business in Q3 of last year, but it’s on a slow offtake. We expect that to sort of get to full potential by the end of this year. And so that should kick in pretty nicely. The fourth project, right. And then the fifth project, we expected approval in H1, regulatory approval in H1, but it’s more likely to come in H2, so again it will be kind of backloaded this year. You know, the cdmo. But hopefully by the time you know we close this year. Right. We’ll see a pretty good CDMO growth as well.
Nitesh Dutt
All right, the last question on margin this quarter we are at 31%. When we started the year we were at 26, 27 because of PLI one time employee expenses, etc. So going forward again what kind of normalized margins do you expect? Is 30, 31% the fair range of margin?
Tushar Mistry
Yeah, we are expecting between 20 to 30% kind of margin range going forward.
Operator
Thank you. Next question comes from the line of Nitin Agarwal with DAM Capital. Please go ahead.
Nitin Agarwal
Thanks for asking a question doctor on the generic AAPI business. Now you talked about the single late single digit growth for F26 but on a structural basis do you still see a possibility of business being early double digit growth on a more 35 year view or this is the new normal for the business given the way things are?
Yasir Rawjee
I think there’s definitely an upswing right now. When that will kick in is the $60,000 question. Right. But given the fact that see basically a lot of the new products are kicking in now and we saw it in FY25, we’ll see this in FY26 as well. So we are pretty confident. Right. What happens is that our expectation on the volumes for new launches is driven by the number of tie ups that we have. Right. So that is a sort of surrogate marker for us.
But it has done much better this year and that’s also reflected on the margin side. So coming back to growth, your question on growth. Yeah, I think we would be going up from here but I won’t predict. You know Nitin, right. You always say I’m conservative. Right. Would rather be that way. So let’s see.
Nitin Agarwal
Thank you. Secondly on the CDMO business now beyond the sport contract scaling up, I mean if you can give us some color on the kind of conversation that you’ve been having and is there any change, any acceleration in inquiries, RFPS which you witnessed and which probably implications of that if you take again a slightly long view beyond 26.
Yasir Rawjee
Oh yeah. I mean that is ongoing as far as pipeline goes. We continue to have quite a few discussions in the pipeline that’s going on. You know the thing is like I’ve explained before, CDMO is like a step function, right? It doesn’t, it’s not a slope. So the moment something qualify, you know, we get qualified in something then you know, once we start validation supplies is when we know it’s coming. Until then it’s a zero. Right. But once you make validation supplies then it’s a one. So that’s why we are not talking about beyond fifth. But you know there are quite a few irons in the fire, right. With respect to, you know, trying to bring more CDMO projects into the pipeline. So probably in late FY26 or in early FY27 we will be able to give better color on this.
Nitin Agarwal
Thanks. But qualitatively are you. I think currently if I just sort of extrapolate our ranges are about 50 to 60 crores per contract is the kind of CDMO work we are working on. But the future negotiation that you’re having, is there an upscale on the 5 or. This is pretty much remain the sweet spot on the CDMO business.
Tushar Mistry
No, I think on average you’re right, I mean it will be around the 50 to 60 crore. Right. That’s where it would be because see the space that we are targeting again is on the lifecycle management and on the 505. Right. So that you know that, that gives us, you know that sort of 7, 8 million dollar kind of, you know, opportunity.
Nitin Agarwal
Thank you so much. Thanks.
Operator
Thank you. Next question comes from the line of Harshal Patil with my asset capital management market. Please go ahead.
Harshal Patil
Good morning sir and thanks for the opportunity. Sir, just have two questions more from an understanding perspective. So sir, just one thing. We did say in the initial comments that there is some bit of restocking also a part of visible few of our clients and then we are talking about about four and a half percent of appraisal. So my question therefore is to understand is there any destocking, led postponement or dealings that we are kind of envisaging more towards the US markets or any other markets in specific.
Yasir Rawjee
Yeah, so see I particularly referred to some of our U.S. customers. Right. And this is on the CDMO side. Right. Not anything else. So overall we’ve got pretty solid demand that continues. There is no sign of loss of it. But the reason we had a soft CDMO. Performance Right. For the year was because of this phenomenon. And then we are sitting on a pretty small base, right. Of only three projects commercial and the fourth one, like I said is kicking in. But it’s going to sort of get to full potential in about a year’s time.
Harshal Patil
Sure. Since you’re going there towards September 26, 27, would we see this things kind of improving like precisely 1H26 or do you see the phenomena still continuing out there?
Yasir Rawjee
As I said cdmo we it will still be a little back loaded in terms of this year’s performance.
Harshal Patil
Okay. So second thing is with respect to the tariff things that you know you just explained. So definitely on the US presentation thing is quite clear. But sir, there were also some rules going around been, you know, some getting in between us, China, stuff like that. So do we really see any impact basically on the Indian CBMO players or Indian players into the US markets because of that kind of a getting into place? Any qualitative inputs from your side would be helpful sir.
Yasir Rawjee
Very difficult to tell here but at least whatever we are able to tell, I mean even our government is working. Right. So I mean the thing is that this could, this could sort of cut either way but again it’s pretty standard I think. I mean, you know, I don’t know if someone’s going to get hit more than someone else. Right. I mean that’s the point.
Harshal Patil
Thank you.
Operator
Thank you. Next question comes from the line of VP Rajesh with Banyan Capital. Please go ahead.
V. P. Rajesh
Yeah, hi, thanks for the opportunity. I joined a little bit late so this may have been already answered but just was curious, you know what is the kind of margin we have from our largest customers even they are increasing the working capital etc. Are we getting good margins compared to our company wide margin?
Yasir Rawjee
So varish, the margin from our largest customer will be in the range, in the same range as our other businesses though it would be slightly less than the overall because it also has a factor of product mix and the largest customer would have more products which are older products with lower margin and also has a good set of new products which has good margin as well. So overall I would say it is not very off from our overall other build of partners.
V. P. Rajesh
I see, so basically you’re saying it probably is more closer to 28% and 30% is the breach that you provide.
Yasir Rawjee
You can assume that.
V. P. Rajesh
Okay, and in terms of the capex that we talked about, what is the kind of asset turnover we are looking for? Is it going to be same or better than what we have historically done?
Yasir Rawjee
So see, right now we are in an investment phase as you mentioned. There’s a good amount of capital outlay that we have planned. So in the near term the asset terms will have an impact, should be lower compared to what we have seen in the past. Although past what was higher? Because the capital investment was not as high and we were really struggling with our capacity. That’s the reason why asset turns are higher. But from a new capital investment perspective, the asset turns initially there will be a slow tick off but gradually it should reach within that two times range for a bit of time.
V. P. Rajesh
Thank you. That’s all I have.
Operator
Thank you. Next question comes from the line of alankarude with Kotak Institutional Equities. Please go ahead.
Alankar Garude
Hi, good morning everyone. So you spoke about the strong representation by the industry groups against tariffs, but say, assuming tariffs get announced in the backdrop of the generic API industry, having seen pricing pressure for quite a few years now, do you think the generic API industry can absorb any further price cuts?
Yasir Rawjee
It’s very difficult to say actually. See, I mean the push is coming from within the US also, right? Pretty strong push and it’s a fairly integrated supply chain between, you know, the U.S. distributors and the Indian and other, you know, foreign suppliers into the us so difficult to tell. See the other thing, no anankar is that there’ll definitely be a difference between API and you know, dose. Okay, front end.
They I don’t think it’s going to get a similar treatment because if API gets a similar treatment, right, then there is no difference between a US supplier and an Indian supplier because both will have to sort of pay the tariffs before or after. So I don’t know. I mean it’s very difficult to speculate at this point as far as the pricing environment and so on. I mean, somewhere in the chain someone’s going to have to have to absorb this. Right. If it’s not going to be the consumer, I don’t know. Very difficult to tell at this point. But the good news is that the industry associations are making a pretty strong push in the US itself.
Alankar Garude
Have there been any discussions, conversations with clients already on tariffs and impact of.
Yasir Rawjee
Not us. We have not had anything neither with our US customers nor with our, you know, global generic players who are largely. Indian. Indian. Right,
Alankar Garude
Got it. The second question, does the funding environment have any impact at all on the CDM order book for us?
Yasir Rawjee
No, because again, we are largely concentrated in the life cycle management space, right. Which is an ongoing business for the big pharma and they are just, they just moving to a better cost base to basically protect themselves against generic entry. Right. That is one element. Right. The other element is a specialty element again. Right. And here, because these are sure shot therapies, it’s only a question of enhancing the therapeutic benefit. Right. In a 505B2 kind of scenario.
So our, you know, CDMO sort of, you know, the projects that are in the pipeline are not being impacted at all by any kind of funding.
Alankar Garude
Okay, so just one follow up on that. In terms of the macro, right. There is uncertainty both for the innovators as well as to an extent for the generic companies, your clients. Is that something which can be a risk over the next, say one or two years as far as our CDM order book is concerned?
Yasir Rawjee
I will very confidently say no.
Alankar Garude
Okay, sir, that’s reassuring. And one final thing. In the previous call you had spoken about working on two differentiated platforms and you had said that there are plans to add more platforms in the coming months. Is it possible to provide any update on this, please?
Yasir Rawjee
Anankar, we’d rather speak about it when we get to a sort of mature state. I mean, work is on. Okay, We’ve got some collaborations going, work is on, but probably around second half or towards the end of this year we’d be able to give you some color in terms of what we are looking at. But work is on and it’s pretty. It’s going well. I mean, that’s all I can say.
Alankar Garude
Understood, sir. That should come my side. Thank you.
Yasir Rawjee
Thank you.
Operator
Thank you. Next question comes from the line of Neerajah with perpetuity. Please go ahead.
Unidentified Participant
Hello. Actually I wanted to ask that you are mentioning your generic tail business. You have mentioned that you would pursue second source opportunities with top gene players. So can you please elaborate? What is this and what are you. Can you explain this part?
Yasir Rawjee
Okay, so so basically when we, when we enter into a customer’s file, right. This happens before they get approval. So that’s when we are usually the first source. Right. So while the ANDA player is sort of developing the dossier and filing and we partner with them at that stage, then we are the first source. But then when the ANDA player already has approval but is looking for another API source, that’s when we go in as a second source or an alternate source. So that’s the difference.
Alankar Garude
Okay. And any date you are planning for FY 25, 20, 24. Could you please repeat that?
Yasir Rawjee
Neeraj,
Alankar Garude
Are you planning any debt for FY26, 27?
Yasir Rawjee
Debt? No, no, no, we’re not planning any debt.
Operator
Thank you. Next question comes from the line of Ahmeda with Unify Capital. Please go ahead.
Ahmed Madha
Yeah, so I had a question on the price erosion which you spoke about. Is it specific to few specific products in just us or is it broad based?
Yasir Rawjee
It’s not price erosion doesn’t happen on every product but typically when there is a bigger volume offtake, right. Especially you know, when launches happen, we do see a bit of price erosion there. On the base business there is a relatively lower price erosion because things have kind of steadied or bottomed out or whatever you want to put however you want to see it. Right. So if I had to classify it, it’s more on the, you know, the newer set of products that see erosion.
Ahmed Madha
And in terms of. Of molecule concentration. Product concentration. Could you spell out the number top five, top ten products.
Yasir Rawjee
Top five products would contribute about 35% of our revenue. I’m making a educated guess. Okay, we can come back to you on the exact number. Yeah. But it will be around 35% top five.
Ahmed Madha
Okay. And just last the presentation we disclose quarterly therapy wise revenue contribution and this, this presentation we have annual numbers and I’m just trying to work out the quarterly number for Q4 and what I see is there is slight change in the mix between others and cbs. Is it fair understanding and would you like any comment on that? Just to understand the change in the therapy mix at the quarterly level.
Yasir Rawjee
It’s quite wavy.
Tushar Mistry
It’s not, but it’s still annual level also very slight change. So just wanted to understand any product where there is significant erosion.
Ahmed Madha
Is there in any new addition or something like that? If there is anything.
Yasir Rawjee
Yeah, so we have a pretty good traction on our urology segment.
Ahmed Madha
Okay.
Yasir Rawjee
That’s doing pretty well. Right. And that’s picking up pretty nicely. The urology segment. There are a few, you know, molecules here and there on pulmonary fibrosis and stuff. Right. That are also doing pretty well. But I mean overall. Right. It’s difficult to sort of, you know, at the quarter to. It’s wavy. I mean that’s all I can say.
Ahmed Madha
Yeah, that’s it from my side. Thank you. Thank you doctor.
Operator
Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Berman cavity. Please go ahead.
V. P. Rajesh
Hi, I have a follow up question on CDMO. So you used to write last year that in four years or so you target to make this PDMO business forex of. Of FY24 site. So do you think we are still on track for 500, 600 crore kind of number by FY28? Also FY28 might be a bit challenging to get to get there.
Yasir Rawjee
But yeah, I mean see the traction is pretty good. Okay. On these and I answered in the earlier to an earlier question that how CDM was picking up. We have a number of projects in the pipeline. Okay. And like I said, right. They’re in the range of around you know, seven to eight million dollars on average. But they can be even higher. Some of them are even higher. But it’s a matter of us locking in another five, six projects and I think we should be there.
V. P. Rajesh
Sure.
Operator
Thank you. Next question comes from the line of Sanjay with an individual investor. Also, a reminder to all the participants by the Mapresta to ask a question. Please go by.
Sanjay
Yeah. Hi, good morning. Thank you for the opportunity. I have three questions. First is what is our exposure to US market? Secondly, around one or two years back we had entered into some TVMO MoU with an innovator from Japan. So what is this status of that? And thirdly, all our three expansions at Solapur, Dahil and Unkaleshwar, they are expected to go on stream in wattage 2 or Q3. Q4, that’s all.
Yasir Rawjee
Okay. So you know, in terms of exposure to us, right. I mean, I don’t know how to. I mean the thing is we’ve got a pretty good business in the U.S. right? It’s about 25%. 25, 30% of our overall business. Right. So I mean, you know, when you say exposure it gives it a different connotation but I just take it as positive we have a 25. Right?
Sanjay
Yeah. Yeah. Okay.
Yasir Rawjee
Yeah. No, it’s a pretty, pretty stable, solid business. Right. Okay. As far as the CDMO with the Japanese, you know, client, this is our fifth project which is under regulatory approvals and like I said, we expect that we will, they will get regulatory approval to use us as an API source in the second half of FY26. Okay. That’s the fifth project that, you know, I was telling, I was talking about earlier.
Sanjay
Okay.
Yasir Rawjee
As far as the expansion in Brownfield goes that we will see coming online by early second half of this year. So around November, November, December time frame, we should see that kicking in both in the hedge as well as in Unkleshwar. Okay. And on Sholapur it would be more like Q4 Phase 1. Sholapur with 300 KL would come in Q4.
Sanjay
Okay, thank you.
Yasir Rawjee
Sure.
Operator
Thank you. Ladies and gentlemen, due to time constraints, we have reached the end of question and answer session. On behalf of alaibas Life Sciences Ltd. That concludes this conference. Thank you for joining us. You may now disconnect your lines.