Concord Biotech Limited (NSE: CONCORDBIO) Q4 2025 Earnings Call dated May. 30, 2025
Corporate Participants:
Sudhir Vaid — Chairman and Managing Director
Ankur Vaid — Joint Managing Director and Chief Executive Officer
Lalit Sethi — Chief Financial Officer
Analysts:
Naman Bagrecha — Analyst
Manoj Bahety — Analyst
Alankar Garude — Analyst
Vivek Agarwal — Analyst
Chintan Sheth — Analyst
Mehul Dalmia — Analyst
Pranav Chawla — Analyst
Vamsi Krishna Hota — Analyst
Alok Dalal — Analyst
Presentation:
Operator
Ladies and gentlemen, thank you for patiently holding. The conference is expected to start shortly. Please continue to hold ladies and gentlemen, good day and welcome to Q4 and FY ’25 Earnings Conference Call of Concorde Biotech Limited, hosted by IIFL Capital Services Limited.
Before we begin, a deep brief disclaimer. 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 are not the guarantees of future performance and 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 touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr Naman Bagricha from IIFL Capital Services Limited. Thank you, and over to you, Mr.
Naman Bagrecha — Analyst
Thank you,. Hi, good afternoon, everyone, and a very warm welcome to Concorde Biotech’s 4Q and FY ’25 earnings call hosted by IFL Capital Services Limited. On the call today, we have representing Concorde Biotech Limited, the management team comprising of Mr West, Chairman and Managing Director; Mr Ankur Vay, Joint Managing Director and CEO; and Mr Lalit, CFO. I will hand over the call to the management team to make the opening comments and then we’ll open the floor for questions. Please go-ahead, sir.
Sudhir Vaid — Chairman and Managing Director
Good afternoon, everyone, and thank you for joining us on our Q4 and FY ’25 earnings conference call. We are pleased to report that Concorde Biotech has delivered a steady and sustainable growth in both revenue and profitability for the 4th-quarter as well as the full financial year. Years. For Q4 FY ’25, revenues grew by 35% to INR430 compared to INR319 CR in Q4 FY ’24.
For the full financial year ’25, revenues stood at INR1,200 cr, a growth of 18% on a year-on-year basis. On the profitability front, PAT for the year stood at INR372 cr, up from INR308 cr in the FY ’24, making a growth of 21% on year-on-year basis. FY ’25 has been a year of focused execution and disciplined progress.
During the year, we undertook two strategic investments that align with our long-term strategies and sustainable objectives. We made a strategic investment in Palvela Therapeutics Incorporation, a biotechnology company based in USA that focuses on developing treatments for rare genetic skin disease.
Palvela is currently developing a topical treatment for rare skin conditions. This investment supports our long-term strategic growth plans. Through this collaboration, we aim to strengthen our supply capabilities and grow our presence in global regulated markets. We have also made strategic investment in a renewable energy company, Cleanmex to support our sustainability goals.
Cleanmex operates wind and solar power facilities with a combined capacity dedicated to supplying renewable energy to our Dolka plant. This initiative highlights our strong commitment to ESG principles. By transitioning to clean-energy source, we aim to significantly reduce our carbon footprint and contribute to global climate action. Alongside environmental benefits, this shift also offers long-term financial advantages through lower energy costs and improved operational efficiencies.
On the regulatory front, we continue to enhance our compliance and preparedness across all facilities. Our API facility at Dholka, Unit 1 successfully underwent inspection by US-FDA, which concluded with four 483 observations, all observations were procedural in nature and none of these were related to data integrity. We have Have already submitted a comprehensive response to the US-FDA and are confident of receiving the EIR in the coming month. Unit 1 also underwent successful inspection by the Ministry of Food and Drug Safety, South Korea. Our formulation facility Unit 2 in Waltera successfully completed an inspection by the Saudi Food and Drug Authority. Additionally, the Health Products Regulatory Authority of Ireland awarded a EUGMP certificate to our Waltera facility Unit 2, reinforcing our adherence to international quality standards. Another significant milestone this quarter was the successful commissioning of our injectable facility at Waltera. This facility has been designed to meet stringent global regulatory requirements and is equipped with advanced technologies to ensure robust, high-quality and compliant production capabilities. The commissioning of this state-of-the-art unit represents a strategic advancement in our long-term growth and capacity expansion roadmap. In FY ’25, Concor has also filed two DMFs, and and got AND approval of tablets. Going-forward, these niche opportunities would give a positive momentum to the growth of the overall business. Concorde also has a robust and diversified pipeline of products across both APIs and formulations. The company is actively developing a wide range of niche APIs catering to various therapeutic segments while simultaneously expanding its formulation portfolio. This approach not only strengthens Concorde’s market presence, but also positions it as a reliable partner in a global pharmaceutical landscape, committed to delivering high-quality affordable health solutions. Looking ahead, we believe we are well-positioned to accelerate growth in the coming years, supported by several key strengths. A broad portfolio of fermentation-based APIs and formulations, strategically expanding into the injectable space with a focus on domestic and emerging markets, this marks a significant milestone as we commercialize our state-of-the-art injectable facility. Robust and diversified pipeline of products across both API and formulations. Continued success in securing regulatory approvals across major regulated markets for our facilities. A strong track-record of delivering consistent high-quality products to a diverse customer-base, large manufacturing capacities to support the expansion CDMO businesses. These factors collectively provide a strong foundation for sustainable growth. We remain committed to disciplined execution, ongoing innovation and delivering long-term value to all our stakeholders. Thank you. And with this, I hand over the call to Mr Ankur, Joint Director and CEO of Concord Biotech.
Ankur Vaid — Joint Managing Director and Chief Executive Officer
Thank you, sir. Good afternoon, ladies and gentlemen. I’m pleased to report that we have achieved strong financial performance with a 35% year-on-year revenue growth in-quarter four and an 18% increase for the full-fiscal year. Notably, our EBITDA and PAT grew even faster by 43% and 48% year-over-year, respectively, demonstrating our continued emphasis on operational efficiency and profitability. API revenue for Q4 FY ’25 stood at INR362 crores, reflecting a 37% year-on-year increase.
For the full-year, API revenue stood at INR940 crores, marking a 14% growth compared to the previous fiscal year. It is important to highlight that the reported API revenues exclude inter-unit sales to our formulation business. As a result, the reported growth may not fully reflect the actual performance of the API segment. When we include the inter-unit API sales to formulations, the segment reported a growth of 16.15% on year-on-year basis. We would like to reemphasize that API business is subjected to quarterly fluctuations due to uneven customer procurement patterns. Therefore, evaluating the API business on a full-year basis provides a more accurate view of our underlying performance.
Turning to our Formulation segment, we achieved a year-on-year revenue growth of 26% in Q4 FY ’25 and 38% for the full-year. This strong performance underscores our ongoing efforts to enhance capabilities and expand our product portfolio within the formulation business. With the recent commissioning of our injectable facility, we anticipate significant scaling of this segment in the upcoming financial year.
Multiple audits are currently underway at our formulation facilities and we are optimistic about revenue contributions from the injectable unit in FY ’26. However, a full ramp-up in the revenues is expected over FY ’27 and FY ’28. Our domestic formulation business, particularly in critical care, nephrology and rheumatology gained strong momentum in FY ’25, supported by several new product launches and an expanded market footprint.
With the field force of over 200 sales and marketing professionals across India, we successfully built strong connections with specialized doctors, reinforcing our presence in key therapeutic areas. Backed by a robust pipeline and a growing customer-base, we are confident of sustaining revenue growth in this segment.
Strategically, we remain focused on strengthening our presence in domestic and emerging markets, while selectively exploring regulated market opportunities. As this business evolves, we expect meaningful growth in both product offerings and customer reach during long-term growth.
The split between our API and formulation business was 78% API to 22% formulation for FY ’25, aligning with our long-term guidance of 80-20. With our API business, OST Formulation segment and the addition of injectable formulation facilities, Concorde stands out as one of the few companies globally offering a fully-integrated platform.
This includes in-house API manufacturing, backward integration up to key starting materials and end-to-end capabilities in the formulation segment. On the business front, we received AND approval from the US-FDA for tablets 7 milligram and 14 milligram used in treating relapsing forms of multiple cirrhosis. This milestone highlights our strength in developing and commercializing a differentiated product portfolio for the US market.
According to IQVIA, the US market for terraflumide tablets is valued approximately $402 million with the global market estimated around $908 million, presenting significant growth opportunities, both domestically and globally. While India and emerging markets remain our primary focus, our approach to the US market is strategically selective. We are committed to pursuing ROI-driven opportunities rather than chasing high-volume, low-margin products.
Our US strategy is rooted in value-creation over market-share and we will continue to expand in this space in a measured and targeted manner. Additionally, we have filed BMF of and voclosporin and registered these products in several global markets, creating greater opportunities to broaden our customer-base and expand our geographical footprint.
In FY ’25, we added 118 new customers across various business segments, reflecting our strong ability to penetrate diverse markets and customer profiles. With these new relationships, we are expected to contribute to revenue generation and serve as key drivers for future growth.
Regarding our CDMO business, we view this as a significant and rapidly expanding opportunity for Concorde. We are actively involved in ongoing development projects and trials supported by robust infrastructure that requires no immediate capacity-related investments. Our CDMO pipeline includes both innovator and generic companies, many of whom we are Seeking to diversify their supply chains or outsource manufacturing for the first time. We are pleased to inform that we have commercialized one CDMO project with one of the innovator companies and we continue to file RFQs and are in active discussion with several potential clients. With proven capabilities, a strong regulatory track-record and global compliance facilities, we are well-positioned to leverage this momentum. What truly reflects differentiates Concorde is our deep expertise in fermentation-based APIs and complex formulation, positioning us as a trusted integrated CDMO partner for companies seeking specialized manufacturing solutions. With the strong foundations in-place, we look-ahead with confidence in our strategic direction and a firm commitment to building a future-ready, innovation-driven organization. Backed by solid fundamentals, a growing product pipeline and customer-base and strong execution capabilities, we believe Concorde Biotech is well-positioned to achieve sustained long-term growth. We are also pleased to share that the Board of Directors have recommended a final dividend of INR10.7 rupees per share for FY ’25 subjected to shareholders approval. This reflects our commitment to delivering consistent value to our shareholders while continuing to reinvest in growth opportunities. With this, I hand over the call to Lalit, our Chief Financial Officer for financial and operational performance. Thank you.
Lalit Sethi — Chief Financial Officer
Thank you, sir. Good afternoon, everyone. Let me take you through the financial and operational performance for the quarter and the year ended March 2025.
On the revenue front, our revenue for the quarter-four of this financial year stood at INR430 crores as compared to the INR319 crores in-quarter four of the last financial year, a growth of 35% on year-on-year basis. Revenues for financial year ’25 stood at INR1,200 crores, a growth of 18% on year-on-year basis.
Revenue from API business grew by 37% in the Q4 this year and stood at INR362 crores and for the financial year 2025, it grew by 14% with revenue at INR940 crores. Revenue from the formulation business in this quarter stood at INR67 crores as compared to the INR53 crores in the same-period last year, a growth of 26%.
Formulation revenue for the financial year 2025 stood at INR260 crores, a growth of 38% on year-on-year basis. Domestic revenues grew by 50% and 24% respectively for the quarter and financial year 2025. Exports revenue for quarter-four this year grew by 19% and for the full financial year, exports revenue grew by 12% on year-on-year basis.
Speaking on EBITDA, our operating EBITDA for quarter-four of this financial year stood at INR190 crores as compared to INR134 crores in the same-period last year. EBITDA for the financial year 2025 stood at INR506 crores, which represents a growth of 17% on a year-on-year basis. Our operating EBITDA margin for the quarter-four of this financial — for this year stood at 44.3% and for the financial year 2025, it stood at 42.1%.
On profit-after-tax, our profit-after-tax for the quarter-four of this financial year stood at INR140 crores as compared to INR95 crores in the same-period last year, a growth of 48% year-on-year basis. Our profit-after-tax for the financial year ’25 stood at INR372 crores as compared to INR308 crores in the financial year ’24, a growth of 21% year-on-year basis.
PAT margins for this quarter stood at 32.7%, a growth of 286 bps on year-on-year basis and PAT margins for the full-year financial year ’25 stood at 31%, which represents the growth of 67 bps on year-on-year basis. So with this, I shall now leave the floor open for question-and-answer, please.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press R&2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.
The first question is from the line of Manoj from Carneline Asset Management. Please go-ahead.
Manoj Bahety
Hi, am I audible?
Operator
Yes, sir. You’re audible.
Manoj Bahety
Hi, good afternoon, Ankur and team. First of all, congratulations for good set of numbers and consistent performance as always. So couple of questions from my side. Can you help me understand the reasons for dip in gross margin or is it because of change in business mix or are we seeing some kind of pricing pressure on immunosuppressants with, I think more-and-more competition coming in into this. So that is my first question. And I will come back for the second question.
Ankur Vaid
So Manoj, on this, basically, this could be on account of change in the product mix. And also if you see that since the base of formulation business is increasing and that business has also been growing at an equivalent at a faster pace. So it’s worth noting that our API products, which are being transferred to formulation units happens at-the-market price and all the sales are get booked in the formulation business.
Manoj Bahety
Okay.
Ankur Vaid
So net-net, there can be some impact on the gross margin, but EBITDA levels, it gets netted off and EBITDA has been growing as such.
Manoj Bahety
Okay. So as more-and-more formulation getting built-up, do we expect that the gross margin will keep on-going down as the formulation keeps on-going up?
Ankur Vaid
No, see, that is not the case. As Lalit mentioned that there is some component of this. Of course, product mix also plays some bit of a role because if you see, you know, while we have said that all the products, the underlying principle is the same, which is niche products with limited competition. But again, the margin profiling across all the 30 products are not the same. So there could be some bit of impact because of the product mix. While formulation is in a particular year it grows significantly higher than that of the API, yes, there could be some impact on that particular year.
But as we have mentioned earlier that the capacities are built such that the 80-20 ratio should on a long-term basis prevail. So if you would look it from a long-term perspective, we do not see any significant impact. But yeah, as rightly mentioned, on a year-on-year is something say, the API — the formulation increases, there could be a little bit of impact on the gross margins. But of course, EBITDA, as Lalit mentioned, has been in-line with what we see. And with the injectable facility coming in, I think the margin profile even in the formulation segment will improve than what it is when it is only an oral solid facility.
Manoj Bahety
Got it. And the second question is in fact I have two short questions. One is if you can give a little bit more update on CDMO, as you mentioned that you have started seeing green shoots there. And secondly, on the balance sheet side, we have seen some deterioration in the receivable and inventory side. Is it a year-end phenomena? More sales might have happened in the month of March. So these two things, if you can answer.
Ankur Vaid
I think, you have answered the question. So if you see that, of course, our last quarter has been on the higher side. And even if you consider a 90-day credit period 90 to 110, you know, that is as on — as on 31st March is sitting on the books and that’s why you see that as a higher number.
But you know, from a circulation perspective or from a cash-flow perspective, there is no challenge to us. This is just a phenomenon as on the closing of the books and that is primarily on account of larger sales — higher sales happening on quarter-four. Coming to your question on the CDMO business, yes, I think we are seeing a good positive momentum. We have already commercialized one CDMO project with one of the innovator companies and I think supplies to them are going to start soon as well.
Being a new product that they are launching, we do not have how much the quantum is going to be of this business. But since you know they are — they are very optimistic and very you know, seeing it as a great big opportunity for them also in the global markets that they have launched this product. But to Concorde, we would still See that how the product you know gets into the market, but we are quite pleased that we now have a CDMO project at a commercial-scale with the innovator company. And there are few other projects that are — that are quite at advanced-stage. We just need to kind of keep working on that, but are hopeful that you know things would be going positive also in that direction.
Manoj Bahety
Great. Thank you so much for taking my question and wish you good luck.
Sudhir Vaid
Thank you.
Ankur Vaid
Thank you.
Operator
Thank you very much. The next question is from the line of Alankar Garudez from Kotak Institutional Equities. Please go-ahead.
Alankar Garude
Hi, good afternoon, everyone, and congrats to the team on a good set of results. Sir, one question on pricing again. Can you comment on the pricing dynamics in the immunosuppressant portfolio? And if you can split it across developed and emerging markets? And this question is over the past couple of years.
Ankur Vaid
Yeah. So if you see the pricing, again, there has not been much change when you look at from a customer-to-customer basis. But as we have mentioned earlier also that when you look at larger — some of the customers that are not with us and they are larger customers, sometimes you may have to give somewhat of a price to them because of the nature of — because of the kind of volumes that they’re bringing in.
And again, it’s a trade-off between larger capacity utilizations that are happening, which would bring in operational efficiencies versus kind of somewhat of a price discount that you may have to give. So you know that is something that we would continue to look at it. It’s not that we have given those to larger customers. But then again, if the opportunities that we are evaluating do come by and it does demand, then that’s something that we would be open to consider.
But when you talk about the price difference between developing and a regulated market, I don’t see much of a price differential there because many of the companies have global footprints. When I say many companies, those are formulation companies. And you know, when we sell our APIs to Indian companies and they have competition in, say, the US competing with US formulation companies, in today’s world, everybody knows what’s the price that Indian companies are getting or US companies are getting. So there is not much of a delta that has been left when it comes to API pricing between emerging and regulated. So there is not much difference, but — but as I said that the pricing at a customer level has not changed much significantly, but for newer opportunities, it could change.
Alankar Garude
Got it. That’s helpful, Ankur. Just on that point, if I look at the 14% growth on API in FY ’25, broadly, how would you break that between pricing, volumes and new introductions?
Ankur Vaid
So there has not been any price increase that we have given to customers. So all the growth has come from volumes only. And if we see that the anti-infective business actually has started picking-up quite well. So as we had mentioned at the time of a couple of years back also that our intent is that our — our dependency on immunosuppressant goes down, while you know, we do not see a risk to be immunosuppressant because all the APIs that are there in immunosuppressant we are manufacturing.
So you know while the value base of immunosuppressants has grown, the percentage of immunosuppressants contribution has come down, which has been primarily on account of anti-infectives products that getting launched. And if you see the new DMF that we have filed, one is voclosporin, which is again an immunosuppressant. So any product that comes into the immunosuppressant, we are present there. And that has an integrated approach because the key starting material, cyclosporin, we also manufacture.
So the kind of cost dynamics that Concorde would have, nobody else would be having on even when the product gets commercial, right now it is a product. So we see a lot of opportunity on. And the other product is, which is a large-volume product, but product which has limited competition. So there also we are seeing a lot of opportunity in nis statin and over a period of two to three years, we see that these products that are getting launched in the last two years and going-forward would be contributing significantly.
So over a period of time, we would be looking at bringing our immunosuppressant contribution from maybe 5% to 10% lower from what it had been a year, year and a half back and already work is going-in that direction.
Alankar Garude
Got it, Ankur. The second question, can you comment on your R&D as well as manufacturing capabilities on peptides. I’m asking this because at least as far as our current commercial presence is concerned, we do not have much of a presence.
Ankur Vaid
So of course, we have a strong R&D team of over 150 people working across API and finish formulation and a lot of work is happening on new fermentation API development. I mean, to the markets we have talked about 10-plus products, but we have a much larger number of products that are there in the pipeline, which again are niche products with limited competition and are complex enough projects.
And so the R&D team is working on these molecules, plus a lot of CDMO projects are something that we are evaluating and working towards in addition to the formulation R&D. But coming to peptides, you know, we are seeing that — we are seeing opportunities in other segments than peptides, which are adjencies to infermentation, which we are currently evaluating and exploring.
But I would say peptide is not something that we are trying to do something in-house. If things work inorganically, that could be something that we would explore. But right now, in-house, we are developing some other adjencies to fermentation, not peptides.
Alankar Garude
Got it. And one final question before I come back. See, in the last two years, our first-half, second-half sales split was broadly around 45. Should we expect a similar revenue split going-forward?
Ankur Vaid
See, again, Alangar, it’s very difficult. If you see a year and a half, two years back, our quarter two numbers, our quarter two sales significantly changed compared to what it was historically. So you know, as I said that on a quarter-on-quarter it at time becomes quite lumpy. While you know we say that our second-half is better than the first-half, but you know the exact split is something on a quarter-on-quarter basis, you know, we won’t be kind of able to put a number to it.
Alankar Garude
Fair enough, Ankur. That’s it from my side. Thank you.
Ankur Vaid
Thank you.
Operator
Thank you very much, Participants who wish to ask your question may press star in one at this time. The next question is from the line of Vivek Agarwal from Citigroup. Please go-ahead.
Vivek Agarwal
Hi, thanks for taking the question. Sir, Ankur, you highlighted that you want to bring down by around 5%, 10% lower from the current level. Is it possible for you to share what is the current share of in your API revenues?
Ankur Vaid
Yeah. So, you know two years back when we had come out with our IPO, that time the contribution was around 80% and today it has come down to around 70% 75%. So in two years, we have brought it down from 80% to 74% 75% and our intent, as I said, is to bring it to 5% to 10% lower than what it was a year and a half, two years back.
Vivek Agarwal
Understood. And you also talked about actually in some of the previous calls that you want to launch around 8 to 10 products in the anti-infective antifungal segment. So what is the progress out there? And any specific products actually if you want to talk about few products, so that can contribute meaningfully, let’s say, over the next couple of years in these segments that we need to watch out for?
Ankur Vaid
Yeah. So as we mentioned that every year, we’ll have around two to three products that we would be commercializing. And I think as we mentioned during the call that this year we have commercialized two products, which is and. And going-forward also, you know, we have quite a few products right now, which are at quite advanced-stage of commercialization and we expect that in this year also, we would be going with a similar or maybe slightly better launch of the products.
And even at the finished formulation level, we have done quite a few filings in the US and we expect commercialization on those products also in the US, which would then be extended to global markets and we have a strong pipeline of products for the oral solid also. And in addition to that, a lot of efforts is now also being put in commercializing projects in the injectable because of the newly-launched facility.
We have already taken exhibit batches of around two products and we have quite a couple more products that are there going for Exhibit batches. So a lot of work is happening on all the three fronts, be it API, oral solid formulation or the injectable product portfolio.
Vivek Agarwal
Understood. Thanks. And just one question on the approval, right? It looks like the product is fairly commoditized, lot of compression is already there in the US market. So what makes you are quite excited about this product or how you are competitor — how you are basically better-positioned compared to the competition in this product.
Ankur Vaid
So, if you see is a Parafor opportunity product. And while there are four, five players, still the kind of penetration that is needed is not there. So I think like those three, four players, Concorde also is in that race of once the market truly opens up, you know, we would be able to get a significant contribution to the to the US business. But in addition to that, as I mentioned that out-of-the $900 million, close to $500 million is ex-US. So — and as I mentioned that we are focused also on India and emerging markets. So extension of these dosiers into the emerging markets is also something that we are seeing from a value recognition from having more from a ROI driven perspective.
Vivek Agarwal
Thanks. Thanks, Ankur. That’s from my side.
Operator
Thank you. Thank you very much. Before we take the next question, we would like to remind participants that you may press star in one to ask a question. The next question is from the line of Chintan Sheth from Girik Capital. Please go-ahead.
Chintan Sheth
Thank you. Thank you for the opportunity. Am I audible?
Ankur Vaid
Yes.
Operator
Yes.
Chintan Sheth
Hi, Ankur. Hi,. A very strong comeback for the 4th-quarter and congratulations to the team. So a couple of questions from my end. One is, again, half the update on gross margin. On the annualized basis, I understand that the share of formulation has increased over FY ’24 and that has resulted into a slight margin compression at the gross level. But if I look at the current quarter, the API share has been pretty strong. The margin — gross margin contraction has been pretty sharp. If you can just provide some input on how should we look at — even if we see the share of API to be very strong this quarter.
Ankur Vaid
So it has been strong. But as I said that you know not all APIs that we have, we have close to 30 that we have now commercial. So not all of those have the same kind of margin profiling. There could be some bit of variability to it. So that is one. And second, as Lalit mentioned, that the way that the API is getting transferred to the Unit 2 at-market price, the impact of that is playing out also.
But if you see at the overall level, if the price erosions would have happened, then that should not — the EBITDA margins would not have been in the same level. So it is a bit of the two things that is primarily playing out, which is the significant contributor to the gross margins that you are you see.
Chintan Sheth
Got it, got it. And second, on the capex front you mentioned even in the CDMO side, we don’t anticipate a huge investment going into the projects we are currently discussing with our clients. I’m just trying to understand how should one look at capex given the injectables is already commercialized and we are largely capitalized. Some part is still lap which is sitting in CJP. But if you can highlight and guide something on the capex front would be helpful.
Lalit Sethi
No, I think all the capital expenditure with respect to the growth is already over. The injectable has already been commissioned now. So as far as the capacities for API and formulations is concerned, it’s also available as of now. So there is no plans for having any additional capex for the capacity expansions.
Ankur Vaid
So if you were to look at — yeah, if you look at — just to add to what Lalit mentioned, so for our API and formulation business, we do not see any new capex happening over and above the maintenance capex of INR20 crore 30 crores that is there. But you know, we would continue to look at growth in the agencies, whether organically or inorganically and that is something that we continue to explore.. That’s more than sufficient for the CDMO project which you are referring to.
So in case some other CDMO project comes through, so there is a significant infrastructure which is available, which can be built with small amount of capital. And the tariff demand minimize that opportunity we are also exploring through for it largely for the — no, that is our own ANDA and we will be — we will be marketing that under our own okay.
Chintan Sheth
Okay. Got it. Okay. I’ll jump back-in queue. Thank you and all the very best.
Ankur Vaid
Thank you.
Operator
Thank you very much. Participants who wish to ask a question may press star in one at this time. The next question is from the line of Naman from IIFL Capital Services Limited. Please go-ahead
Naman Bagrecha
Hello. Am I audible?
Operator
Yes.
Naman Bagrecha
Thanks. Thanks for the opportunity. Sir, just wanted to understand on what about my understanding is you’re targeting both the markets seriously, I mean, both in the sense US and ex-US market as well. While you highlighted that ex-US market size would be closer to, let’s say, $500 million, just wanted to understand what is the competitive landscape over there and what kind of, let’s say market-share targets are we keeping in mind?
Ankur Vaid
See, again, you know, right now, we are not going with that we would have a 10% or a 15% kind of a market-share. I think the efforts right now are to kind of extend these dosiers into those markets. And most of these players are companies which are mostly focused on the US market. So you know in the in the emerging markets, sometimes you may be the early entrant in those markets, but being an early entrant also plays to your advantage, which is a slow and steady market-share gain when you are the next in-line to say the competing only with the innovator.
So that being said, I think right now, the efforts that we are putting in is filing the dosiers in the emerging markets. We have already started selling this product in India under our own brand. So you know, similarly, we are now going to be extending this dosier to the emerging markets. And then we’ll see that how the progress happens. I don’t want to be, you know, giving out a number which kind of you know, looking at a larger value kind of takes the discussion into a very different pathway. But yeah, the opportunity is huge and we are kind of seeing that how we can you grab that opportunity to the maximum extent.
Naman Bagrecha
Okay, okay. And what kind of margins would be there for this product in the US? I mean, you can probably just say whether it is above corporate EBITDA margins or lower corporate EBITDA margins that?
Ankur Vaid
We also have pretty much in-line with our oral solid dosage margins — formulation margins that we currently have.
Naman Bagrecha
And that would be lower than the 40% margin, 40%, 42% margins.
Ankur Vaid
That’s correct. Because that is a blended of the fermentation and we finish formulation.
Naman Bagrecha
So sir, my next question is on the gross margins. If you look over the past two to three years, while our formulation business has increased, gross margins have also a declined. However, EBITDA margins have kind of remained a largely stable to some extent if I look at ’24, ’25, 40%, 42%, how should we look at the gross margins going ahead? Will this decline and then how is that basically been offset by the other opex items? Where are we seeing savings?
Ankur Vaid
So if you look at our five years historical numbers, the gross margins on a CAGR number would not have changed more than 2% to 2.5%. And when you look at on a five-year period, any variability on account of raw-material fluctuations, product mix, you know, formulations picking-up. And so as I said that in a — this is — this was not the case in say last year or so or it would have been quite a low number because of different reasons. So as I said that it is difficult for us to say that how things would look going-forward . But if the — if you are one of the only players or the newer products that you’re trying to launch, the competitors are somebody say in Europe and with say even with a good profitability margin, you’re able to gain market shares and there could be years where you would see expansion even in the gross margins because say a product like if it starts working or a product like daptomycin or any other product or, if you see that if they start contributing significantly over the next few years, that’s something that we are also seeing as our anti-infective segment is picking-up. So it could be in particular years, you may see gross margin expansion also happening. But if you would look at on a five-year period, there has not been significant change in the gross margins that we have observed that’s helpful. Just on this one, seduxomycin, is this also a para four opportunity for us or it’s a generic product now.
Naman Bagrecha
Okay.
Ankur Vaid
But something that we are actively working towards.
Naman Bagrecha
All that got it. Thanks. Thanks. I’ll jump back the queue.
Operator
Thank you very much. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference. Please limit your questions to one, two per participant. The next question is from the line of Mehul from Edelweiss Mutual Fund. Please go-ahead.
Mehul Dalmia
Hi, good afternoon, sir. Thank you for the great numbers. Sir, my question is to again do with the gross margins. Just want to get a better understanding. When you look at Q3 versus Q4, margins have obviously compressed by roughly 8% on gross level. The formulation revenue is roughly flat at INR67 million and the API revenue has grown by nearly 100% on a Q3 basis. At the same time, your export domestic mix, it’s more skewed towards domestic this time.
So my understanding was generally that the formulations would carry a lower-margin. In this case, obviously, we don’t see that variability and API formulations are roughly flat and API is the one which has actually taken-up the larger portion of the mix and we’ve seen the decline. So you know, how do we kind of understand this better? Is it that APIs being supplied to domestic are going at a lower-cost or how do you kind of understand that?
Ankur Vaid
So in the formulations that we have, it is being supplied at-the-market price. Now the domestic sales has increased for the APIs and that is primarily something that we have also talked in the past that one of our customers who was contributing around 6%, 7% has closed down their facility in the US and moved significant part of their operations in India. So there has been some contribution coming from that shift of the customer also, which was contributing 6% to 7% of our API business.
So — and you know, the newer products also that we are launching have some — some — have several customers who are basically Indian customers, but have much larger market-share in the global market. So I think we do not see any major change happening in the domestic export. And as mentioned earlier that the prices also between domestic exports are not that much different. So I do not see any much significant variation on account of domestic export, but yeah, the change in the gross margin is something that we have kind of mentioned in also previously also. So I would not have anything further to kind of
Mehul Dalmia
Understood. Understood, because I think the variability is there between the other quarters also even last year in Q4, you have higher — lower gross margins. But if I were to just go to the EBITDA level in that sense,
Ankur Vaid
Just to add there, Neil, that sometimes what happens is that if a significant inventory is also sitting in the books as an as a stock inventory, that also has a component of the of the overheads into it. So sometimes that also kind of plays out that if you have significant inventory sitting there, it could have an impact on the gross margins also. So there are a lot of factors which kind of play-out on a quarter-on-quarter number. So it becomes a little tricky to kind of, you know look into that what is actually playing out, it could be a factor of multiple things.
Mehul Dalmia
Understood. And on the EBITDA side, obviously, it’s majorly a factor of leverage playing out. Can we say that? Because if I look at the numbers at least the employee costs are flat and the other expenses are slightly higher or are in the same run-rate, which is normally there for the other quarters. So understood. Perfect. Thank you, sir.
Operator
Thank you morning. Thank you very much. Participants, please limit your question to two per participant. The next question is from the line of Pranav Chawla from Ambit Asset Management. Please go-ahead.
Pranav Chawla
Good afternoon, sir. Congratulations on the stellar set of results. Sir, couple of questions. Can you share what is our utilization level across the manufacturing facilities?
Ankur Vaid
Sure. For the unit fund, it was 84% for Unit 2, which is a formulation facility, it is 36% and for the Waltera — for the Limbassi facility, which is Unit-3, it is 40%.
Pranav Chawla
Sir, unit 2 does it include the injectable? Are you adjusting for that?
Ankur Vaid
No, no, injectable is recently commissioned, so the capacity utilization will start from the next year onwards.
Sudhir Vaid
And that is unit four.
Ankur Vaid
That is unit four.
Pranav Chawla
Okay, perfect. And sir, during the quarter, what would be the quantum of expenditure from the new unit?.
Lalit Sethi
So currently, you know, as I said that we are just kind of — it just got commercialized in the month of March. So it will be difficult to give a number right now because we are still kind of ramping-up our — our team and the work. So at this moment, it will be difficult to kind of give a number to that.
Pranav Chawla
Okay. Sir, finally from my end. Can you — two questions from my end. One, can you share what the therapy mix is right now in APIs? So we already know that immunosuppressant is around 75-odd percent. What would be the other therapies contribution for the year?
Ankur Vaid
So we don’t give therapy level data, but broadly 74% broadly is the immunosuppressant and the rest is — the rest is the other segments wherein the major contribution is coming from the anti-infective segment.
Pranav Chawla
Okay. And sir, can you also share a bit more color on the CDMO contract that you mentioned will be commercialized in the coming quarters?
Ankur Vaid
Sorry?
Pranav Chawla
Can you give some color, share further details on the CDMO contract that we have mentioned, we’ve called out recently?
Ankur Vaid
Yeah. So we have like three to four projects wherein we have kind of, you know at quite advanced-stage of discussion and but you know, right now, I think the ball is in the court. So we are kind of engaging with them to see that when they would like to kind of you know, start a complete the valuation process and see that where Concorde stands in that. So I would say that there are a couple of projects quite advanced. And then again, we have few projects across different segments, particularly enzymes and others as well, wherein we continue to engage with — with some of the customers.
Operator
And sir, given the fact that you are — sir, sorry to interrupt, but can you please rejoin for a follow-up?
Pranav Chawla
Sure. Just one last if the management is okay with it.
Ankur Vaid
Yeah, please.
Pranav Chawla
Sir, given the fact that the Unit-3 is already at around 40%, 45% utilization levels and we have a CDMO contract, we are — we are in discussions with a couple of CDMO contracts, do you think we may require more capacity sooner than we anticipated maybe in the next two to three years?
Ankur Vaid
Yeah. It could be possible and we are putting all our efforts that CDMO becomes a significant contributor to the overall business. And even if that happens, you know the incremental cash — the incremental capex that would be needed is very low compared to the kind of revenue that it would generate because you know we have only utilized like 30% of the land and putting up a fermentation unit and while all the other supporting infrastructure is in-place would not require significant capex compared to the revenue that it could generate. So if we reach to that level, I’ll be more than happy to kind of go with that capex.
Pranav Chawla
Sure. Thank you so much, sir. I have couple of more questions. I’ll get back-in the queue. Thank you.
Operator
Thank you very much. The next question is from the line of Hota from Antique Stock Broking. Please go-ahead.
Vamsi Krishna Hota
Hi, sir. Am I audible?
Ankur Vaid
Yes.
Vamsi Krishna Hota
Yeah, congratulations on a great set of numbers. So I just had two questions. So firstly, for both FY ’24 and ’25 , within the formulations business, what is the breakdown of the domestic and international sales between domestic and international for formulations business?
Ankur Vaid
At least around 50-50, around 33% goes to the rest of the world market and 17% goes to the US market and remaining 50% is in the domestic market.
Vamsi Krishna Hota
That’s helpful. And also on the CDMO front, I heard the management saying that you would expect a lot of ramp-up happening there. So over the next two to three years, what kind of revenue mix would you be anticipating from this vertical?
Ankur Vaid
Yeah. See, I mean, currently, if you see CDMO contributes less than 1% of our business because we were mostly focused on the development than the manufacturing part of it. But in the last six, nine months, our focus has been towards more on the manufacturing opportunities in the CDMO. So I won’t be able to give a number, but our intent or our efforts are being to kind of get this CDMO business to a double-digit contributor to our sales numbers.
Vamsi Krishna Hota
Thanks a lot, sir. I’ll join back the queue.
Operator
Thank you. Thank you very much. The next question is from the line of Alok Talal from Jefferies India. Please go-ahead.
Alok Dalal
Yes, Alkur, good afternoon. Are you providing any revenue growth guidance or margin guidance for FY ’26?
Ankur Vaid
No. I think what we talk about, Alok is in terms of the long-term guidance that we have. And I think as we have mentioned earlier that the kind of products that we have, commercial products that we have, the kind of pipeline products that we have, the capacities that have been there, including the new injectable coming in and some of the agencies that we are working towards. I think we have the right ingredients and the mix in-place to kind of go for the CAGR growth that we have spoken earlier.
But when you kind of start breaking it down on a quarter or yearly numbers, then you — quarterly you will see a lot of volatility, but the annual numbers should go progressively towards the kind of CAGR growth that we have set. So it is going to be a gradual move towards the CAGR growth that we have and that’s something that we have also demonstrated in this year. So that’s how we would be looking towards, but there is no specific guidance on a year-on-year basis.
Alok Dalal
Okay. So just to understand when you move towards that CAGR number, which is 25%, so progressively from 18% that you achieved in FY ’25, you will move towards that 25% gradually is what you’re saying?
Ankur Vaid
See, our — so the capacities and the portfolios are designed such that we can go for a 25% growth. And our efforts are also being put that we can go towards a 25% growth. And when we talk about the injectable facility also with the kind of asset turnover it can give, you know, as I mentioned earlier, I think during our calls also that it has the capability to give close to INR600 crores of turnover. And even if I consider INR300 crores over the next three to four years, that itself is a 30% growth on our current baseline, which translates on a five-year period to 6% on our 18% CAB growth also.
So there are a lot of other opportunities like the injectables, which could play-out, you know, but maybe in a particular year, something plays out, something doesn’t. So we would just need to see that how — there could be a little bit of fluctuation and volatility on a year-on-year, not too much, but there is going to be a gradual progression towards going from 18% to 25%.
Alok Dalal
Understood. And second question, Ankur, when you talk about the mix between API and formulation and you’re referring to sustaining this 80-20 number, now given that formulation will grow much faster than API, mathematically, it doesn’t work-out that you will keep this 80-20 ratio. So am I missing something? How do you reconcile this?
Ankur Vaid
Yeah. So if you see the assets that we have at the API in the formulation, you know the capacities have been designed such that the maximum output that you can get-out of that capacities would end-up having to be at the 80-20 split. So that is one. The second is that even if we go say even if at a particular time point, the formulation starts contributing slightly higher, that indirectly actually helps me gain the API market-share and that’s why since the last three or four calls, we have started talking about that inter-unit API transfer also what it is because the overall API market-share is the same.
It is just that instead of addressing it by pure API, sales to those — to that market, I’m addressing it both by our API and formulation. So you know the thing for Concor to look at is that how do I address the overall pie, whether it is through API or through formulation. So even if there is a little bit of mix change between API and formulations, I think to us it really doesn’t matter that much because the addressable market is something that we are we are catering to.
Alok Dalal
Okay. All right. Got it. Thank you.
Operator
Thank you. Thank you very much. Due to time constraints, this was the last question for the day. I now hand the conference over to the management for closing comments.
Ankur Vaid
So thank you everyone for joining on our Q4 FY ’25 earnings call and 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 Relations Advisor. Thank you once again. Have a good evening.
Operator
Thank you very much. On behalf of IIFL Capital Services Limited. That concludes this conference. Thank you for joining us and you may now disconnect your lines.
Sudhir Vaid
Thank you