Concord Biotech Limited (NSE: CONCORDBIO) Q1 2026 Earnings Call dated Aug. 11, 2025
Corporate Participants:
Unidentified Speaker
Sudhir Vaid — Chairman And Managing Director
Ankur Vaid — Joint Managing Director And Chief Executive Officer
Lalit Sethi — Chief Financial Officer
Prakash Sajnani — Compliance Officer And Assistant Vice President, Accounts
Analysts:
Unidentified Participant
Sumit Gupta — Analyst
Yagnam Pathak — Analyst
Maitri Sheth — Analyst
Vivek Agrawal — Analyst
Alankar Garude — Analyst
Kishan Tosniwal — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Q1FY26 earnings conference call of Concrete Biotech Limited hosted by Centrum Broking. Please kindly note that this conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements do not guarantee the future performance of the company and it may involve risks and uncertainties that are difficult to predict. 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 during the conference call, please signal an operator by pressing Star then zero on your Ashtran phone. Please note that this conference has been recorded. I would now hand the conference over to Mr. Sumit Gupta from Centrum Broking. Thank you. And over to you sir.
Sumit Gupta — Analyst
Hi. Thank you. Good evening everyone. On behalf of Centrum Broking, I welcome you all on the Q1FY26 earnings conference call of Concorde Biotech Limited today from the company we have with us Mr. Sudhir Web Chairman and Managing Director, Mr. Ankur Vet, Joint MD and CEO Mr. Lalit Sethi, CFO and Mr. Prakash Sajnani, AVP Accounts and Finance. I would now like to invite Mr. Sudhir Web Chairman & MD for Concord Biotech to give his opening remarks over to you sir.
Sudhir Vaid — Chairman And Managing Director
Good evening everyone and thank you for joining us on our Q1 FY26 earnings conference call. We reported a stable performance this quarter with revenues at rupees 204 crores, impacted mainly by revenue lumpiness. Rupees, the percentage quarter had exceptionally high sales and historically such strong quarters are followed by relatively softer ones. While this pattern persists, we remain confident on achieving our long term goals. On the EBITDA front, the decline was primarily on account of commercialization costs of our new injectable facility in Valtera, which affected EBITDA and margins. We have a robust pipeline of products and have started taking validation batches of these products.
Excluding the injectable facility cost, the EBITDA margins stood in line with the same quarter last year. Overall, Q1 FY26 reflects the successful execution of several key strategic initiatives. Notably, we received approval from the US FDA to market teriflunamide tablets 7mg and 14mg for the treatment of relapsing forms of multiple cirrhosis in the United States. This is an important addition to our portfolio and underscores our commitment to bringing high quality therapies to global market. Over the past few months, our facilities have successfully cleared inspections by the U.S. fDA, EU, GMP and Russian GMP authorities. Reaffirming the strength of our quality and stringent manufacturing standards.
These approvals position us to ensure uninterrupted supply to global markets without regulatory hurdles. We have further strengthened our presence in the US through the incorporation of Stalin Biotech Inc. Which will focus on the marketing, distribution and commercialization of Concorde biotech pharmaceutical and biotech products in the US Market. Stalin will manage end to end commercial operations and it may also collaborate with third party partners for marketing their products in the U.S. this will not only establish a direct commercial footprint in the US but also supports our broader objective of expanding market access and unlocking greater value from our product pipeline across key global markets.
Additionally, we incorporated Concorde lifegen limited As a wholly owned subsidiary to further strengthen our domestic marketing, sales and distribution capabilities for pharmaceutical products. This move will allow us to establish a sharper market focus, enhance customer engagement and create a stronger brand presence in India last quarter. In March 25, we successfully commercialized operations and at our new injectable facility situated at Valsera. This advanced plant has been meticulously designed and constructed in line with stringent international standards. It reinforces our commitment to delivering high quality products consistently and further strengthens our manufacturing capabilities. Moving ahead, we will continue to pursue strategic investments as opportunities arise while advancing our product pipeline and seamlessly driving our R and D initiatives.
We remain focused on expanding our API formulation and CDMO business, delivering a high quality product, maintaining global standards and securing regulatory approvals. These efforts position us as well to capture growth opportunities effectively. We are confident that we are poised to accelerate our business growth. Thank you. With this, I hand over the call to Mr. Ankur Vaib, Joint Managing Director and CEO of Concord Biotech Ltd.
Ankur Vaid — Joint Managing Director And Chief Executive Officer
Thank you. Thank you sir. Good evening ladies and gentlemen. We reported a moderate quarter with revenues down 5% to 204 crores. I would like to highlight that our business is best evaluated on a long term or at least on an annualized basis rather than quarter on quarter. The lumpiness can stem from changes in customer procurement patterns or sales spillover into subsequent months due to approval timelines. This quarter was one such example of that lumpiness. However, our long term growth strategy story remains intact. Notably, our EBITDA and PAC registered a decline primarily due to the commencement of our injectable facilities at Valthera.
These initial costs are expected to weigh on EBITDA margins until revenue from the facility scales up. Gradually through FY26. However, excluding these startup costs, our EBITDA margins stood at approximately 37% in line with the same quarter last year. Moving on to the segmental performance in Q1 FY26, our API revenues stood at 153 crores, reflecting a 10% year on year decline. As I mentioned earlier, customer procurement patterns can be uneven and this often leads to quarterly fluctuations. A full year view provides a far more accurate picture of the underlying performance of our API business. On the formulation side, revenue grew 12% year on year, reflecting healthy traction in the segment.
During the quarter we commenced operations at our injectable facility in Valtera. We expect this segment to start contributing to the revenues in FY26 with a full ramp up anticipated over FY27 and FY28. On the regulatory front, we continue to enhance our compliance and preparedness across all facilities. We are pleased to report the successful completion of multiple key inspections at our API manufacturing facility in Dholka, Gujarat. During the period our API facility in Dholka underwent an inspection by the US FDA and we are pleased to report that we have received the EIR report from the US FDA for this inspection, further affirming our ongoing commitment to regulatory compliance and operational excellence.
This facility was also successfully inspected by European GMP conducted from July 14 to July 18, 2025. Additionally, this facility passed the Russian GMP inspection held from July 22 to July 25, 2025. These achievements underscore our commitment of upholding the highest standards of quality, safety and regulatory compliance across all aspects of our operation. It reflects our dedication to excellence and our continued focus on meeting the rigorous requirements of global regulatory authorities. Moving forward, our global expansion efforts continue to gain momentum. We have now filed over 138 DMFs and secured approvals for ANDAs across key international markets, further enhancing our product reach and customer base.
From a strategic standpoint, incorporation of Stelon Biotech and Concord Lifegen will provide growth opportunities in US And India and further strengthen our position in these markets. We continue to focus on manufacturing niche and complex products with limited competition. Currently we have a portfolio of 30 plus products with several more under development. Our strategy is to leverage our technical expertise to swiftly capture market opportunities and increase our market share. Concord remains one of the few companies globally producing more than 30 fermentation APIs across multiple therapeutic areas including immunosuppressants, oncology, anti infectives and antibacterials supported by a robust RD engine.
We are consistently expanding our molecule portfolio to strengthen our long term growth trajectory in Q2FY26 we marked a significant milestone in our diversification strategy by initiating sales to our CDMO business to the US Market. We view the CDMO segment as a high growth opportunity for Concorde Biotech driven by increasing global demand for dependable, high quality manufacturing partners. Our team are actively collaborating with more innovators and and largely generic pharmaceutical companies on projects ranging from early stage development to commercial scale supply. Encouragingly, we are receiving and responding to a growing number of RFQs and we remain optimistic about the future prospects of this vertical.
We currently have one commercialized CDMO project and have started our sales to them in Q2FY26. We are also currently in advanced discussions with several potential clients to expand our CDMO engagement. Backed by our proven technical capabilities, strong compliance, track record and expertise in handling niche and complex products, we are well positioned to secure a meaningful share in this growing market. Over the medium term, we expect the CDMO business to become a significant contributor to our overall growth and to further strengthen our relationships with leading global pharmaceutical companies. With this, I hand over the call to Lalit Sethi, our Chief Financial Officer for financial and Operational performance.
Thank you.
Lalit Sethi — Chief Financial Officer
Thank you sir and good evening everyone. Let me take you through the financial and operational performance for the quarter. On the revenue front, our revenue for Q15FY26 stood at rupees 204 crores as compared to 216 crore in the same period last year, 5% lesser in this quarter. Revenue from the API business stood at 153.8 crores against 171.1 crore in Q1 of the last year down by 10%. Revenue from the formulation business has grown by 12% in this quarter from Rs. 44.8 crore to 50.2 crore and revenue from the domestic and export businesses are lesser by 5% in quarter one of this financial year as compared to the same period last year.
Speaking on EBITDA, EBITDA for this quarter stood at Rupees 61 crores as compared to the 81 crores in the Q one of the last year and EBITDA margins for this quarter stood at 30.1% against 37.7% in the same period last year. As mentioned, the cost related to the commercialization of our new injectable facility have temporarily impacted ebitda. However, as revenue from the facility scales up, we expect to benefit from operating leverage which will enhance overall EBITDA and margins. Excluding this, our EBITDA for the quarter stood at approximately 37% consistent with quarter one of the last year on the profit after tax.
Our profit after tax for this quarter stood at rupees 44 crores as compared to the 60 crore in the same period last year. Our pat margins for this quarter stood at 21.6%. So with this I shall now leave the floor open for question and answer.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask question may press star in one on the touchdown telephone. If you wish to remove yourself from question queue you may press R and two Participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question is from the line of Yagna Pathak from AM Securities. Please go ahead.
Yagnam Pathak
Hi for taking my question. So the cost impact to the welter facility. So back calculator around 14 crore rupees. So firstly is it a close by figure and if you can please quantify how much of it would be personal cost.
Ankur Vaid
So yeah, around 12 to 13 crores is the expense that is related to the to the injectable facility.
Yagnam Pathak
Okay. And any one offs.
Lalit Sethi
Outlook at 4.27 crore is on account of the employment cost. Power and fuel is around 2.77 crores. And remaining is the other expenses.
Yagnam Pathak
All right.
operator
Thank you. A reminder to all the participants, you may press star and one to ask question. The next question is from the line of Maitri state from choice institutional equities. Please go ahead.
Maitri Sheth
Hi, thank you for the opportunity. I just have a couple of questions. One is on the export revenue. Just wanted to understand how much of it is coming from the US and second is given that we are still in line to achieve our EBITDA margin guidance. Could you just throw some color on by which quarter can we expect these increased expenses to normalize. That’s all.
Lalit Sethi
So as well as the bifurcation of exports revenue is around 45% of the total revenue is exports and 55% is the domestic out of the export revenues around 17% is to the US and 33% is to rest of the world.
Maitri Sheth
Okay, that explained. Thank you so much. Secondly on the EBITDA if you could just give some idea.
Lalit Sethi
EBITDA as I mentioned it to you this time it is impacted because of the commercialization of the injectable plants. In case excluding this commercialization the startup cost it will be in line with what it was in the same period last year. So it was 37% last year. So this year also stood at 37%.
Maitri Sheth
Okay, thank you so much.
operator
Thank you. A reminder to all the participants, you may press star and one to ask question. The next question is from the Lalam Vivek Azarwal from Citigroup. Please go ahead.
Vivek Agrawal
Hi, thanks for the question. Ankur. Just as far as the dip in this quarter in API business is concerned, so is it mainly driven by quarterly fluctuation in procurement, etc. Or is there any impact of pricing headwinds as well? Because multiple companies, especially in the API space are reporting some kind of headwinds as far as generic pricing is concerned. Thank you.
Ankur Vaid
This is primarily an account as mentioned earlier. It is on account of the lumpiness in the business that we have seen because of the heavy quarter four because again, you know, we are anticipating that the customers would be having some bit of inventory in their hands because of which we have seen that lumpiness in 4 to 1. So that is the reason because of which we have seen this.
Vivek Agrawal
Thanks. And how is the pickup that is happening in the new Limbasi facility and especially in the Onco and infective segments if you can throw some light.
Ankur Vaid
So Oncology is only being, is only being catered to unit one. We do not have Oncology at the Limbati facility but the Limbasi facility is picking up quite well because most of the new products will be getting validated and commercialized from the new site only. So last year we did Nistatin, so that was manufactured at unit three only. We have couple more products that we are looking at commercializing in this year and those would also be coming from unit three only. So as we start building more molecules, as more molecules become commercial and, and you know that will further help us kind of optimally utilize this Limbasi facility.
Vivek Agrawal
Thanks. And Ankur, just if you can throw some more light on the CDMO contract as well as the I think the commercial supplies that you begin this particular quarter. Right. So that would be helpful. So how much or what kind of the revenue ramp up that can be expected in let’s say over the next couple of quarters and what type of the product this is and what are the customers, whether it is generic customer or the innovative customer. So that would be helpful, thank you.
Ankur Vaid
So they’re a mid sized innovator company who have recently launched the product. So it’s a new product that they’ve launched and you know we have catered to one of their orders. We have couple more which are already, you know, there in the pipeline. So it would be executed also. So you know it’s Picking up quite decently. However, we don’t have the forecast from them because as I said that they’ve just launched the product and we anticipate that some kind of a forecasting would be provided to us by next financial year. And this year is going to be more about, you know, getting the product onto the market and seeing that, how the product moves.
But so far the response from the market has been, has been good.
Vivek Agrawal
So this is a product.
Vivek Agrawal
Launched by an innovator company very recently.
Ankur Vaid
Correct.
Vivek Agrawal
Okay. And it is there in the human health. Right. Rather than any veterinary or egg chem, etc.
Ankur Vaid
This is also in vet.
Vivek Agrawal
Okay, thanks. I have more questions. We’ll join back the queue.
Ankur Vaid
Thank you.
operator
Thank you. I reminded all the participants, you may press star and one to ask question. The next question is from the line of Sumit Gupta from Central Brooking. Please go ahead.
Sumit Gupta
Hi, can you sir, let us know on new molecules which we are working on currently?
Ankur Vaid
So currently we are working on mostly on the antibiotic segment and oncology segment. As I mentioned earlier, we have close to around 10 to 12 products which are there in the pipeline and a couple of them are at relatively advanced stage. So we are expecting around two to three molecules, a couple of them through antibiotics and maybe one molecule or so from the oncology.
Sumit Gupta
Okay, so what can be the market. Size, potential market size of this, the.
Ankur Vaid
Potential market size for each product? I can come back to you with the exact numbers because again IMS doesn’t provide at the API level. But I would say this would be put together both the three products, I would say close to around 500 to 700 million dollars. And on both of these, on all of these three products, again the same thing is there, wherein you have maybe two or three player market with limited competition coming in. So they are again both complex niche, even though it is the antibiotic space. These are again complex niche molecules where around two or three players are there similar in case.
Just like Nystatin, if you see Nistatin, which we launched last March, filed the dmf, it is also an antibiotic, but there are only two players, both of them from Europe. So you know, that gives us a lot of advantage with the kind of scale that we have, the expertise that we have and the approval in place. So similar kind of thing we are seeing in these two or three molecules that we are looking to kind of launch in this year.
Sumit Gupta
Understood, sir. And second question is on the injectable facility. So what kind of ramp up can we see for this facility?
Ankur Vaid
So as we have discussed previously also in other calls that this year is going to be more about launching in the domestic markets only. So while filing for the emerging markets. So for this year, you know, we’ve already taken validation batches for a couple of our products in the first quarter only we have couple more products that are lined up for validation in quarter 2 and quarter 3. So we’ll take our validation batches, we’ll be catering to the Indian market and then be filing in the emerging markets. And somewhere by end of next financial year is when we will see commercialization of products in the emerging markets.
So that is with respect to the ramp up when you see it from the emerging markets. But now that we are fully integrated on the injectable space, we see ample opportunities even in the domestic. So we are just seeing how things would move. And you know, Concorde, Lifegen and all these are ways to kind of keep further penetrating into the, into the Indian market more and more. So you know, much of the groundwork is there in place now so that we can kind of, you know, move more aggressively into the, into the injectables market even in India because we have the APIs, the front end is already there.
And now that we are manufacturing ourselves, we’ll have a full integrated approach to cater to the markets.
Sumit Gupta
So thank you.
Sumit Gupta
All the best.
Ankur Vaid
Thank you.
operator
Thank you. A reminder to all the participants, you may press Star in one to ask question. The next question is from the line of Alanka Gardule from Kotak Institutional Equities. Please go ahead.
Alankar Garude
Hi, good afternoon everyone. Sir, firstly can you provide the capacity utilization across all the facilities?
Lalit Sethi
Yes. In the unit fund in this quarter the capacity utilization is 75% and for Valsera it is around 26% and for the Limbasi it’s around 57%.
Alankar Garude
Sorry, can you repeat the number for Limbasi again? Sir?
Lalit Sethi
Limbasi it is 57%. For Baltera it is 26% and for Dholka it is 75%.
Alankar Garude
Okay, so two questions then as follow ups. One is on Limbasi we were at 40% in the fourth quarter which is increased to 57. So I mean, how should we read this considering that API sales have declined even on a sequential basis?
Lalit Sethi
Last year we were at 50%, not 40%. It was 50%.
Alankar Garude
So you are saying fourth quarter FY25, the previous quarter. Not last year we were at 50%.
Lalit Sethi
No. Yes, we were at 50%. To be precise it was 52.62%.
Alankar Garude
Okay, okay, fair enough. And the second question linked to this is if you look at Volterra there, the utilization levels have dropped. Does it, does this include the injectables capacity as well?
Ankur Vaid
No. No.
Alankar Garude
So in that case, was there any impact of this lumpiness on the formulation sales as well in this quarter?
Ankur Vaid
So lumpiness I would say is much there in the, in the formulations. But it could be that certain material that has been manufactured and shipped by seek has not been considered into the sea. So like a cutoff sales could be because when we supply to Latam and to the US we use sea. So it could be some portion of that could be on account of that.
Alankar Garude
Understood. The second question was on pricing. Now you mentioned that this decline of 10% year on year is predominantly due to the uneven customer pattern procurement patterns. But just on pricing, would you like to comment whether pricing has been stable on a YOY as well as on a QQ basis and broadly, given that we have offered price discounts to customers which have a higher volume of take, is that something which continues for us or have we seen any change as far as those patterns are concerned?
Ankur Vaid
So you know, when we are working with customers across different geographies, prices to many of our customers remains relatively same. However, when we are entering into newer accounts or we are entering into newer products, say for example Nystatin or Voclosporin, at those times for those opportunities, the prices could be different. Because if say you are entering as a sector second source supplier into certain accounts, the price expectations, given that they are larger in volumes, could be different. So you know, it depends upon market to market, it depends upon customer to customer. But whenever you know you are, you are entering as a second source, be it for your existing or newer products, there could be some pricing benefits that we have to give to customers.
Now that pricing could be above our average price or could be lower. But the impact of that I would say could be at times relatively lower given that we have a much, much, much larger base. So the impact may not be that much significant enough. But that is something that for future businesses with the newer opportunities, with newer products, new customers, something that we do on a case to case basis. Got it.
Alankar Garude
Ankur, just one question here is, I mean given that there are no new launches as far as immunosuppressant is concerned, would it be fair to say, given your comments, that pricing in immunosuppressant is more or less stable and for the other therapeutic areas, as we expand our presence there, possibly pricing can move a bit depending on some of the new clients which we are targeting.
Ankur Vaid
I Wish I could say that prices will remain stable for years to come. But you know, as markets change, you know, for now things look stable. But I cannot say that how markets would do or how markets would behave. The only way to counter any of these kind of price impacts that may come is through your R and D development. So you know, we keep investing in our R and D for our existing products also. So that maybe if not today, tomorrow something comes up, you know, we are able to kind of absorb any of the pressures that may come.
So you know, that is the only way that we have to kind of work towards products which are well catered to and well addressed market. And also given that, as I mentioned earlier, that we have 30, 40% of the world market share, we still have another 40, 50% to target. So many of those opportunities we are already targeting in different geographies for which we have already undergone regulatory inspections. We have done the filings in those markets and we are awaiting approvals in those markets. Now that can happen in this year or in subsequent year, we have to see that.
But whenever that opens up, that will also help us increase market share even in our existing products. So we know which are the customers that we need to target. All our efforts are towards that. And as a result, what I mentioned earlier, that if you are targeting those second source opportunities, then there the pricing could change because of that. But if it happens to our existing customers for different reasons, if, if that, then the only way to address that would be through continuous R and D improvement.
Alankar Garude
Got it Ankur. So basically you are saying that even for immunosuppressant and the therapeutic areas as well, depending on the new customers we want to target, pricing can vary accordingly.
Ankur Vaid
Correct. Like I’ll tell you an example just to kind of, you know, for one of our products which we have recently launched, the market price was close to around 350, $400. We launched it at almost 25% discount. And at that price many of those European players are not able to compete. And that is the reason why we are seeing a lot of traction. But even with that price that we have, we are able to maintain healthy EBITDA margins. So while we are going as a second source opportunity, so you have cases like this also and then you have cases where we have to go maybe at certain products, certain cases below our average price.
So, you know, it’s dynamic in nature is what I wanted to kind of put it across.
Alankar Garude
Understood. And one last question, with your permission. So when you talk about losses from the injectables unit easing off over the course of the fiscal, how should we look at EBITDA margins for the full year? Because 30% this quarter clearly is much, much lower than what we have done for many number of years. So given this performance, how should we look at EBITDA margins for the fiscal?
Ankur Vaid
Yeah, so if you see, if you remember that in our last year first quarter also the sales were relatively subdued and that time also we had mentioned that, you know, it could be also as an impact of the fixed cost which is there and all, so that injectables fixed cost is getting fully loaded on the base that we have for the first quarter. As our sales starts moving up, this percentage impact will go down. So while the value would be more or less in line with what it is, but it will trim down when you would start looking it as the time horizon increases.
It is just that for quarter one it looks higher because of the lower sales numbers.
Alankar Garude
Got it. Do you expect the facility to break even by the end of FY26?
Ankur Vaid
I would hope so. I would want it to. But you know, the only way for it to kind of do that is that we are putting a lot of our efforts on the domestic front because the opportunity even in India market is significant for some of the products that we have taken, the validation batches and some that we are expecting in the country coming months. So those opportunities are large and you know, we are having a more focused approach to kind of penetrate on these four, five products that we are launching from India for the India market.
But these things take time to kind of engage with the doctors, to engage with the hospitals. Let’s see how that goes. But I think given the market size opportunity, even in India, we are quite optimistic in terms of how things can move. But again we have to see that how, you know, how market behaves.
Alankar Garude
Understood. That’s very helpful. Ankur. That’s it from my side. Thank you.
operator
Thank you. A reminder to all the participants. You may press Star in one to ask question. The next question is from the line of Mamshi from Antique Stone Cloaking. Please go ahead.
Unidentified Participant
Hi, am I audible?
Ankur Vaid
Yes.
Unidentified Participant
Thanks for the opportunity. Sir, I just have a couple of questions. Firstly, on the CDMO front, so the new contract that we have entered into, is it on the API side of it or the FDF side of it? And in terms of the pricing, is it fair to assume that it’s a cost plus margin kind of a strategy we use?
Ankur Vaid
So the opportunity is actually on both front, both API and formulation. So it’s A more integrated kind of a play that we are working with them. And yes, it is a cost plus point.
Unidentified Participant
All right. Secondly, in terms of the new, you know, acquisition that we have done on the US front. So given that US already contributes 17% to the top line before this we did, did we have front end presence there or is it that we relied on someone else to do the distribution for our products?
Ankur Vaid
So maybe I’ll clarify that. So the 17% export that goes also has component of API as well as formulations, the direct formulations that we are selling into the US Telon Biotech is basically going to be working in that front when it comes to APIs into the US market. There we will continue with our existing channels which is direct marketing through Concorde to those customers in the us this is only with respect to the formulation because as our portfolio is increasing, you know, is there we are seeing in terms of how we can do that in house.
So this is again primarily focused only towards formulations both in house as well as from third party manufacturing.
Unidentified Participant
Got it sir, just one last question. So given we know our business has a lot of cyclicality actually on the API side, how do you, how should we look at the Overall growth for FY26 and if you can also give some color on, you know, how the API and the formulations segments could perform.
Ankur Vaid
So you know, I won’t be able to comment in terms of giving any guidance in terms of how this year would look like. But you know, typically our business has growth coming from three or four factory areas. One is the market growth. Secondly we have innovators business getting converted to generic which also gives us a market share growth. Third is new customer acquisition. So like a second source opportunity. So wherein we enter as a second source with the intent to become a product primary source and the fourth is the new products category in terms of how fast we kind of penetrate into customers and start that churning into the volumes.
So these four components kind of make the overall growth for us which does not include the injectables, which does not include the cdmo. Now in a particular year there could be that the third and the fourth bucket are playing out very significantly out. And there could be certain years where it may not play out as much as we would have anticipated. So for me it is difficult to say at this point that what that growth number could look like. It could be 20 plus, it could be a very different number. But I think given where we are, we are confident that it should be in line with what our historical performances have Been.
But I just wanted to put it across that these are the four buckets with which play out in terms of the growth. And we’ve put all our efforts to kind of that Each of these segments kind of plays out and contributes the way that we’ve looked at. But I expect it to be in line with what historically has been without giving any kind of guidance to it.
Unidentified Participant
That is very helpful, sir. And just one last question, with your permission. So in the injectables bucket, how many products do we have and you know, by when do you kind of target launches from this?
Ankur Vaid
So we have already started selling the injectable formulation. We’ve already started selling in the India market. We have currently launched two products from. From the injectable facility. We have another two which are, you know, expected to be commercialized in the coming months. And we have around 10 products in our phase one that, that we intend to launch for which the work is ongoing.
Unidentified Participant
All right.
Ankur Vaid
And for Most of these 10 products, we are backwardly integrated.
Unidentified Participant
Got it, sir. Thank you. Yeah.
operator
Thank you. The next question is from the line of Kishan Toshniva from Polar Ventures llp. Please go ahead.
Kishan Tosniwal
Good evening. I have basically two questions. First is we are into different segments, right? API formulations and right now into CDMO as well. Just wanted to know the profile of our margins. Is the. Is all the businesses are having similar kind of margins or the businesses have different margins.
Ankur Vaid
So they, you know, the. In fermentation, if you see there are very limited players globally and when we are competing with the likes of Southeast Asians or European players, definitely the margin profiling is very different compared to the Finnish formulations, which is relatively. A little bit more crowded, if I may say so. In short, the answer is yes. The margin profile is very different between the two different segments.
Kishan Tosniwal
Okay. And the second question that I have, I’m seeing the R D spends. That is the percentage of our sales. It was 3.6% in 22, 3.5 in 23, and it has dropped 2.3%. Can. Can we have a ballpark picture? What, what is the future that we see? Because as more and more R D spend increases, our pipeline also increases. Is my understanding correct?
Ankur Vaid
So in fermentation, the R and D spend is different from the way that RD spend happens. In formulation. In formulation, much of the R and D spend is coming from the API, which they are, you know, which we end up buying at a higher cost, as well as the BAB studies that we do. So that’s why the spend in the R and D looks different than what our numbers are in fermentation. What we do is that much of the R and D actually happens at a very, very small scale. And the best of the results are only the ones that we kind of take it to a larger scale.
So this is more about the expertise rather than at the volume gain. And that is why the spend looks lower. But the output or the productivity plays out a lot more here. So fermentation R and D has to be looked differently than some of the other formulation companies that they kind of work on. And in our case we do not have any KSM that we end up buying from China. Our KSM are something which are locally sourced, which are agro based products. So you know, the cost also becomes relatively lower. So it’s more about the expertise rather than the cost.
Kishan Tosniwal
Okay, and if my, if I can squeeze in one more the R and D employee strength that you are showing greater than 135. If I may know, these are all the, what do you say, Scientists only or these are different category persons like scientists and their subordinates and all kinds of things.
Ankur Vaid
So the 135 that is there includes everybody in the R D180 number is greater than one.
Kishan Tosniwal
Oh, sorry, sorry. It’s 180. I, I was seeing API DMF greater than 135. Sorry, yeah, 180.
Lalit Sethi
Yeah, the number is 180. And this one it is number includes everyone.
Kishan Tosniwal
And this R D facility is at all the plants or it is located at one place only. I can see the API facilities at two places and formulation facility at one place.
Lalit Sethi
We have 2rd center, one for the API which is located in API unit and another is on the formulation which is located at Valtera.
Kishan Tosniwal
Okay, thank you.
operator
Thank you. The next question is from the line of Aniket Panior from Baroda BNP Paribas. Please go ahead.
Unidentified Participant
Yeah, hi. Thank you for the opportunity. So I have two, three questions. So first of all, on the API side, what is the length of the contract that you have with the clients like for six months or yearly basis, how is it? And does that include the price escalation clause with the clients?
Ankur Vaid
Typically we don’t have any contracts with the clients. And the reason for that is that once you start working with the formulation company, there is a lot of stickiness between the two. So like for many of our customers we are primary source and in case some we are secondary, the intend for them has been to make us as a primary source. So you know, when you have that kind of a stickiness, you know, you, you don’t have contracts. We have quality contracts in place because that’s somewhat like a requirement for the authorities. But when it comes to supply contracts, I would say very few companies would have like larger MNC companies may have supply contracts, but many of those, many of the other ones would simply be working in terms of interacting with us and kind of working in terms of what their requirements are.
Unidentified Participant
So you and for any. So if there’s an increase in prices, is it like do you all are able to pass it on? Sorry, if there’s increase in prices from your end or do you pass it on to the clients?
Ankur Vaid
So you know, we’ve, we’ve neither increased our prices nor decreased our prices. One of the earlier discussions I mentioned that in case there is a pricing pressure on us, we kind of compensated through our R and D and in case we are able to save, then that is something that we keep to us. So we neither increased or decreased prices to our customers, most of our customers I would say in the last years.
Unidentified Participant
So secondly, on the formulation side, how many launches are we expecting this including India and our rest of the geographies also how many launches and if you are giving any guidance for growth for the next one, two years.
Ankur Vaid
So you know, on the growth guidance we did speak about a while back, so I won’t repeat on that but on the launches, yes, we have filed for a couple of our products. We are expecting approvals in different markets and these are new product launches. And also in India market we have launched the rheumatology segment and this is an extension to the autoimmune that is there. So within the intra, if you see which is our nephrology dialysis business, we have a rheumatology business also which has been launched and we are seeing good traction even in that segment.
So where we see good opportunities in terms of products, we would be looking at launching some of them, we are doing it in house whereas some other products, we’re also in licensing those products.
Unidentified Participant
Fair enough. Just lastly on the CDMO front, what is the mix that you’re looking at in the long term beyond three, four years, what kind of contribution should one expect from the CDMO business?
Ankur Vaid
See, CDMO if you see is a very big opportunity and it is very sizable. But I think conservatively if I would have to look, I would say that you know what internally what we are seeing or targeting is that if we are able to get maybe four or five opportunities, maybe in totality around 40 to 50 million dollars. That itself is a sizeable opportunity. Given where we are now. This number instead of 50 million could be 15, 20 million also you know, because as I said that there are not many fermentation players who have the kind of strength that Concord has.
Because you know, with our capacities, regulatory approvals, expertise, given the cost advantage that we have versus Europe and given the given, you know what is happening with China, people trying to de risk and looking at India, we have everything in place to kind of become an ideal partner for many of these companies. So the numbers could be very large also. But if I consider maybe four or five opportunities with a total 40, 50 million in total, that itself gives us around 6 to 7% annualized growth over what our historical growth has been. So that is something that internally we kind of look at how we can kind of build at least a 40, 50 billion dollar opportunity will be on the CDMO while it could be larger as well.
Unidentified Participant
Fair enough. That’s it for myself. Thank you.
operator
Thank you. The next question is from the line of Maitri State from Choice institution equities. Please go.
Maitri Sheth
Hi, thank you again for the opportunity. Just a couple of questions. Are we still on track to achieve a 25% figure on our consolidated top revenue? And earlier I believe we had said that we are expecting a 35 to 40% CAGR on formulation. So any comments on that?
Ankur Vaid
So again, you know, when we say a 25% CAGR growth let me maybe make it a little bit more clearer that Concord has all the ingredients in place to kind of go towards that kind of. So you know, when we talk about the capacities are there in place, you know these capacities in their current form can give sales much over the 25%. Do we have a differentiated strategy in place? As I said earlier in fermentation there are not many players and Concorde has been gaining market share share on its existing product as well as on the new launches that we are doing.
So our current business continues to do well. Historically you have seen that we’ve had close to around 18% CAVA growth for many many years now. But that being said, there could be a little bit of variability depending upon how the things move. On top of that we just spoke about the CDMO business and the injectable business. So if I say a 4050 million dol opportunity on CDMO that is close to around 400 crores which if you take it on a 5 year, 6 year period this could be around 6 to 7% growth. If you take the injectables, this facility can do close to 600 crores.
Even if I take a 300 crore conservatively on a five year period because the first one or two years is going to be more about the submissions to the authorities and then getting. So maybe from 2nd, 3rd, 4th year onwards it will start contributing. So if I take a 300 crore opportunity also that itself translates to 5%. So on our baseline growth of 18, plus 5 and plus 5 kind of gives us somewhat of a clarity that yes, 25% can be done. So I would also not know how my five years look like. But what gives us the comfort is that we have all the right ingredients in place to kind of achieve those growth.
And something that we have demonstrated historically, that’s how the number comes out. And when we talk about the formulation, if we have to grow at this kind of a growth that we speak about with an 80, 20% way that we are looking at, those numbers automatically translate to 40% growth if you’re looking at from a formulation which has a relatively lower.
Maitri Sheth
Okay, that’s all. Thank you.
Ankur Vaid
Thank you.
operator
Thank you. As that was the last question for D, I would now hand the conference over to the management for the closing comments. Over to you, sir.
Ankur Vaid
So thank you everyone for joining on our Q1 FY26 earnings call. We hope we have been able to address all your queries. For any further information, please get in touch with us or sga, our investor relation advisers. Thank you once again and have a good evening.
operator
Thank you. On behalf of Centrum Broking, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.