Senores Pharmaceuticals Ltd (NSE: SENORES) Q3 2025 Earnings Call dated Jan. 23, 2025
Corporate Participants:
Prashant Nair — Moderator
Swapnil Shah — Managing Director
Deval Rajnikant Shah — Chief Financial Officer
Sanjay Shaileshbhai Majmudar — Chairman
Analysts:
Ninad Sarpotdar — Analyst
Vivek Gautam — Analyst
Aman Goyal — Analyst
Divyaxa Agnihotri — Analyst
Shaurya Puniani — Analyst
Darshil Jhaveri — Analyst
Rohan Vora — Analyst
Dhwanil Desai — Analyst
Hardik Gandhi — Analyst
Presentation:
Operator
Ladies and Gentlemen, good day and welcome to the Senores Pharmaceutical Q3FY25 earnings conference call hosted by Ambit Capital Private Limited. 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 and then zero on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Prashant Nair from Ambit Capital Private Limited. Thank you and over to you sir.
Prashant Nair — Moderator
Type earnings call of Senores Pharmaceuticals we have the following members of management with us on the call. Mr. Sanjay Majmudar, Chairman, Mr. Swapnil Shah, Managing Director Mr. Deval Shah, Full Time Director and CFO.
I’ll now hand over the call to Swapnil to walk us through the quarter. Over to you Swapnil.
Swapnil Shah — Managing Director
Yes, thank you Prashant. Good afternoon everyone. Thank you for joining us on Senores Pharmaceutical Limited’s Q3 and 9 month FY25 earnings conference call. Along with me on the call we have our chairman Mr. Sanjay Mahmoud, our CFO Mr. Deval Shah and our Strategic Growth Advisor, our Investor Edition partners. We have uploaded the results and investor presentation on the stock exchanges and I hope everybody had an opportunity to go through the same. 2024 has been a milestone year for Semrus Pharmaceuticals. We we got listed on Indian stock exchanges in December 2024.
I would take this opportunity to thank the entire Senores team as well as bankers and all the stakeholders for their efforts including all the investors who have shown faith in us in our business. Since it’s our maiden earnings call, I would like to give everyone a brief overview of Senores Pharmaceuticals. To begin with, Senores Pharmaceuticals is a global research driven pharmaceutical company engaged in developing and manufacturing pharmaceutical products predominantly for the regulated markets like us, Canada and others.
Our strength lies in identifying, developing and manufacturing a diverse range of specialty under penetrated and complex pharmaceutical products. Establishing us as a preferred partner to our customers. Through various means like data analytics, research of different D2C segments, market assessments and with our experienced team we strategically identify commercial as well as underpenetrated molecules to launch in the various regulated market that we operate in.
Also we we look at upcoming molecules in emerging markets. We leverage our R and D capabilities to develop and manufacture a product a portfolio of differentiated as well as complex pharmaceutical products. We also have a fast growing emerging market business spanning across 40 plus countries with the main presence in Far East Asian market CIS as well as Latin America, Africa and other markets that are there on the emerging side.
Along this side we are also pouring into API manufacturing and marketing of critical care injectables in India. This business is a relatively at nascent stage with a huge growth potential. As we are all aware, regulated and emerging market businesses are carried out through our three subsidiaries.
Two subsidiaries are in the US Cenorus Pharmaceutical Sync and Heavy Grouping in the US and Senores Pharmaceuticals Private Limited in India. About 60 to 65% of our consolidated revenue comes from a regulated market through our US subsidiaries and about 30 to 35% revenue comes from emerging market through our subsidiary. The balance is from API business as well as critical injectable business that we have going slightly deeper in our key business verticals regulated markets particularly in the US which is our biggest vertical for Cenorus and remain and it will remain the focus area for us.
Till date Senores has commercialized about 22 products which are of our own products in the regulatory market as on date we have 24 approved ANDAs and we’ve received five new approvals in latest quarter. As we speak further to that we have 51 products that are coming in the pipeline. Some of them are already filed, some of them are exhibit stages, some of them are at R and D stage.
Between this 51 we expect 5 products to be launched in Q4 financial year 2025 so coming quarter this quarter out of these 51 products, 28 products have the opportunity of getting CGT which is competitive genetic therapy product pipeline spread across multiple therapeutic areas like cardiovascular cns, pain management, muscle relax and so on and so forth. Apart from our own product, we have pretty large CDMO CMO vertical in the US and for other regulatory markets. We believe our CDMO and CMO partners rely on our customized formulation, development and manufacturing capabilities to address the growing drug and therapy complexity, cost efficiency and regulatory scrutiny.
We partner with many of our CDMO partners early in the drug development process enabling us to expand our relationship as molecule progresses through different phases of commercialization. This results in sustained relationship with our partners and give us an opportunity for recurring revenue stream for CDMO and cmo. We have partnered with large pharmaceutical companies and currently as we speak we have 21 commercial products on the CDMO CMO as we speak and 69 products we have in a pipeline on the CDMO CMO side.
As we gain more reference and scale, we envision this business to grow faster with product addition and product approvals. As we get on the CDM or CMO and wallet share addition and customer addition across markets on this segment of the business. The regulated market business catered to and from our US FD approved manufacturing plant based out of Acanta US the facility has about 185,000 square feet of manufacturing area with capacity to produce about 1.2 billion units both tablets as well as capsules annually. It has maintained excellent compliance record. Last FDA approval was without any observation without any 483.
We are a DEA compliant manufacturing plant with it has be a compliant certification for government supplies that happens in the US So large part of our CMO CDMO vertical also goes into where we could leverage our U.S. manufacturing base. You know where you require to be manufactured in the US that will go into either a commercial control substance supplies as well as government supplies through BA certification which is buy American X certification for our emerging market business.
As I said, we develop and manufacture pharmaceutical products across different therapeutic areas as well as different therapeutic dosage forms. So right from the injections to oral solids within injections, multiple form of injections in oral solids, multiple form of oral solids as we speak that we manufacture at our Ahmedabad facility where it goes into emerging market as we speak. The facility has an annual capacity of about 1.5 billion units on the oral solid side and about 50 million units on the injectable side.
As of today we have presence in about 40 plus countries globally with a portfolio of 267 registered products wherein we have recently added 62 more products that we got approval from various countries. A further total we have 537 products under registration with 131 new filings that will take place as we move forward.
Having put in place a strong product portfolio, we are now streamlining and improving our go to market models on emerging markets as we speak. Speaking of our critical CAD segment, we launched our division in August 2022. Focus area is to directly supply to hospitals cutting down all the mid level distributors and suppliers.
So we tend to tie up directly with multi specialty hospital hospital chains and continue to expand our product based on the critical care side of the business. On the APIs we commenced with an objective of doing an API manufacturing facility as backward integration. Currently the API facility that we have caters to domestic as well as SAR countries.
However, in the medium to long term we intend to manufacture API for regulated markets and Chennai markets largely for micro integration as we speak. We manufacture currently through our NARODA facility and Greenfield API facility at Chatral is likely to come in soon. Currently we have commercially we have commercialized about 16 APIs which also includes some of oncology APIs as well.
Again as I said, Senores is R and D driven company with a differentiated product portfolio across different usage forms which has enabled us to reach a range of targeted markets with the presence in U.S. canada and other energy markets. Our capabilities include internal research and development knowledge, established and established manufacturing capabilities both in India as well as in US Again, our strength lies in our ability to identify research, develop manufacture in house pharmaceutical products for hydrotherapy for which there is a limited competition.
We have three R&D facilities, two in India and one in the US with team of more than 70 people spread across different locations. If I talk about our key strengths as highlighted earlier, our core strength at Ceneros lies in leveraging our R and D capability to identify, develop and manufacture niche and complex formulations for regulated markets. So far we have 100% track record in terms of conceptualization of a product to commercialization.
I think that’s very unique feature that as a company we have so far been able to establish. Another factor is that the ability to secure CGP certification for a large part of our products. This certification provides us an early access advantage to standard our foothold in the marketplace as we speak relatively our onboarding of the distributor partners to reduce the investment risk for Senores.
That’s our key. So we partnered up early on the development cycle that reduces our risk in the entire marketplace entire business proposition that we offer and our marketing and distribution partnerships are long term, usually five to seven years that we have. Our CDM or CMO also provides recurring revenue, steady cash flow, predictable cash flow and the visibility on the business as well.
So looking ahead we will continue to expand our regulated market business particularly in the U.S. apart from expanding our existing products to newer micro markets, the focus will be on the faster expansion of our marketed product portfolio coupled with fast tracking of CDM or CMO segment. We’ll also keep looking for inorganic growth opportunities in form of product acquisitions and so on so forth.
On the emerging market business we’ll continue to focus niche range of products, expanding our presence in mid care markets like Brazil, Mexico, Australia, South Africa, Russia and so on so forth. We are also continuously working on streamlining our go to models in emerging markets where we could be a deeper penetrated player in some of the markets that we are present in. Another area where center is currently working as we discussed is on some of the APIs where we could back or integrate it largely it will help us improve our cost competitiveness as well as protect our supply chain.
On some of the products where we have dependency on single source. Speaking of our Q3 and 9 month FY25 performance, we are delighted to report healthy broad based performance across all our business segments in Q3 and 9 month FY25. Growth in the regulated market was driven largely by a strong traction of CDM or CMO segment as well as our own product in which we have secured new orders at a steady pace.
And then our product, our rolling forecast and order base continues to expand and increase. In the marketed segment we have a Strong base in Q3 2024. Consolidation of the acquired business had led to strong reported growth in emerging market segment as well in Q3 with FCI25 on the operational front we received one product, we commercialized one product in which we received five approvals in the previous quarter as you see.
So taking our ANDA number to 24 as we speak and there are five products that are targeted to launch in coming quarter. The current quarter as we have we added 60 new products, 267 products across total portfolio takes the product of 260,000 products in energy market as we speak in the December quarter. With an established regulated market presence, growing emerging market business and further expansion API indectable segments, we believe there is a strong growth Runway for Senores to tap on. We believe we are equipped to leverage the growth opportunities with our expertise and experience that we have developed over last several years.
I would like to hand over the call to our CFO Mr. Deval Shah to take you through the financial performance of the company and thank you. Over to you Deval.
Deval Rajnikant Shah — Chief Financial Officer
Thank you, Swapnil. First of all a warm welcome to everyone on center has made an earnings call. I’ll give you a brief of our financial and operational performance for Q3 and 9 months ideally till December 31st. Speaking of the consolidated revenues or income for Q3, FY25 stood at 906 crores reflecting the growth of 35.2% compared to 79 crores of Q3 of FY24.
This strong growth has been driven by robust performance in both CBMO and the emerging market business. The nine month FY25 revenue stood at 288 crores which represents a significant growth of 157% from INR112 crores in nine months of FY24 coming to the segment Wise breaker regulated business Revenue stood at 70 crores in Q3 of 2025 as compared to 68 crores in Q3 of 2024 a growth of 3%. But the CDMO business stood at the growth in CDMO business stood at 68% YoY for nine months.
FY25 revenue from regulated business stood at around 180 crores as compared to 90 crores in nine months of 2024, a significant growth of almost 100% on YoY basis. Emerging market business revenue growth grew at a stellar 289% on a YMY basis stood at 26 crores for Q3 for 9 months. FY25 revenue from emerging market grew more than 10 times.
However as a rider Q3 FY24 add revenues from the start is only for 17 days on account of acquisition which happened on 14th of December of 2023. For 9 months of 2025 almost 64% of revenue was contributed by regulated markets business, 30% was contributed by emerging market business and balance was contributed by API and injectable verticals. Speaking of EBITDA, EBITDA for Q3 to that INR29 crore indicating an increase of 92% from INR15 crores in Q3 of 2024.
This improvement in ICTA reflects operational efficiency and operational user age in the business. For YTD nine months current year ITA surged by 281% reaching 74 crores as compared to 19 crores in the corresponding previous period. EBITDA margins stood at 27% for Q3 up from 19% in Q3 of previous year an increase of almost 810 bpm.
The nine month EBITDA YTD margins were at 26% over 17% seen in corresponding previous period, an increase of almost 870bps. EBITDA margins on our regulated business stood at almost 40% in Q3 which was similar in the YTD period too. EBITDA margins for the emerging margin business stood at 1% and 1.4%
During the quarter and the nine month period respectively. After binary reinsurance for Q3 FY25 grew by 142% standing at INR17 crores compared to INR7 crores in Q3 of 2024. For nine months FY25 pet after minority interest grew by 162% to INR41 crores as compared to INR16 crores for the corresponding previous period.
Debt margin stood at 16% for Q3 up from 9% in the corresponding quarter, an increase of 710 basis points. Impact margins for nine months stood at 14.1%. To summarize, we have witnessed a very strong performance across all segments and are Optimistic of outnumbering our internal targets going forward.
With this, I open the floor for questions and answers.
Questions and Answers:
Operator
Thank you. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Ninad Sarpotdar from Aditya Birla Money. Please go ahead.
Ninad Sarpotdar
Hello. Am I audible?
Swapnil Shah
Yes.
Ninad Sarpotdar
Yes. So a couple of questions. How much is the CDMO revenue as a percentage of revenue and is it included in the regulated segment in the media review that you have given or is it under others?
Swapnil Shah
Yes. So a couple of questions. How much is the CDMO revenue as a percentage of revenue and is it included in the regulated segment in the media review that you have given or is it under others? CDMO revenue for the quarter are almost 11% of the total revenue and it is included in the US segment. The US revenue, okay. It is almost 12% to 13%. This is of the total revenue, not as a percentage of regulated market. Yes, these are the total revenue.
Ninad Sarpotdar
So it is classified under the regulated markets in your investor release that you have made. You have given out that 63% of regulated market revenue contain 30% of emerging market and 6.6% of others. So I just — I was just wondering where it is classified.
Swapnil Shah
No. So CDMO revenue is actually only coming from regulated markets. Percentages with Devil showed or just mentioned it is of the total revenue. So if I look at CDMO on the regulated market front, it is almost about 19%. Got it. This is the beginning of the CDMO revenue cycle. You will witness this percentage is going significantly up quarter over quarter because of the strong tailwind that we have on the CDMO side. Most of it will be start capturing quite aggressively from Q4 of this year.
Ninad Sarpotdar
And how much are the margins on CDMO business currently?
Swapnil Shah
Yes, strategy, we will want to. We’ll stick to the consolidated margin, the EBITDA level of our regulated market business, which is around 40% because then you know there are. This is how we have to look at it.
Ninad Sarpotdar
Understood. So just to understand that there is a scope of expansion in these margins.
Swapnil Shah
Yeah. So as I said, you know, we have currently 20, 21 approved CDM or CMO products. As you see within this 21, some of the products got launched in month of August, September, October time frame. So this year you will have the remaining period, that is whatever is left in current financial years and the next year you will get a complete full year of those 21 products that we currently commercially have. Apart from this 21, we have 69 more products that are under CDM or CMO vertical that will get commercialized at different stages. So some will get commercialized say next month, some will get commercialized after 2, 3 months. So likewise, we have 69 products that we have. So give you very precise number. So, so we are expecting about 15 to 17 CDMO CMO product to get commercialized in current quarter over and about 21 that we have. And total we have 21 plus 69 as we speak in terms of number of products.
So there’s a significant growth that we expect out of our CDM or CMO vertical.
Ninad Sarpotdar
Understood.
Deval Rajnikant Shah
18, 19%, which I just spoke about is actually the last quarter. But if you look at nine months, it goes up as high as about 24% as a part of the total regulated business.
Ninad Sarpotdar
Okay, okay. And sir, any particular reason for the emerging market margins to be so low at around 1%. And how much these can go up to? Just getting color on that.
Sanjay Shaileshbhai Majmudar
Yeah. So you know, emerging market, there is a lot of activity that we’ve done in last two years in terms of changing the product mix. And earlier large part of our focus was on the African markets. So we are changing the product mix as well as market mix. As you saw, we have several hundreds of products under registration on emerging market. And large part of our focus has been now on the cis, Southeast Asia and Latin American markets where our margin profiles are better than the African market. That predominantly how the emerging market was structured. So in next coming quarters you will see as we get more approvals on account of these different markets, largely on the Latin America, CIS and Paris markets, the margin will continue to expand on emerging market as well. Our product mix is also very different.
We are doing lot of products that are first to launch, first to market in multiple of market that multiple of countries that we are presenting. That should also give us good margin profile as and when these products get launched. So yeah, definitely we expect our EBITDA margins to significantly improve on the emerging market side as well.
Ninad Sarpotdar
Can you put a draft, can you put a rough number on it? Like how do you see it flowing?
Deval Rajnikant Shah
I think it’s a little premature, but as Swapnil explained, when we acquired this business and then we have started transforming it, I think an optimum targeted level of EBITDA would be much higher. But we will speak as we go forward. But our internal target at the optimum level is at least 15 to 18%.
Ninad Sarpotdar
Okay, okay, that’s good. Just one last question that you said just on clarification that you said five products are expected to be launched in Q4. Any CGT opportunities in this and how are the margins on the CGT products?
Swapnil Shah
So again, you know CGT is granted once the product is launched, right? So this quarter we are launching five products as we speak. So probably we can update once the product is launched. CGT is granted. Currently out of five, one is CGT designated product. Rather whether we get it or not, that will be determined once the product is launched. So we’ll update as and when that event occurs.
Ninad Sarpotdar
And how does the margin behave like as compared to 40%. How much is the difference between that?
Deval Rajnikant Shah
40% is a branded margin of own products which are non CGT and CDMO as we speak. Whatever earlier product which we had already launched, the CGT window is over. So today it is own products which are the cdmo. In general, the margin of our own products is higher than that of CDMO and cgt whenever that window is there it is again higher than the normal. But I think it’s better if we again keep on looking at the blended margins.
Ninad Sarpotdar
Sure, sure. Okay. Okay. That’s all from myself. Thank you so much for the meeting.
Deval Rajnikant Shah
Thank you.
Operator
Thank you. A reminder to all participants, you may press Star and one to ask a question. The next question is from the line of Vivek Gautam from GS Investments. Please go ahead.
Vivek Gautam
Yeah, Am I audible?
Deval Rajnikant Shah
Yes, Vivek.
Vivek Gautam
Hello. Am I audible?
Deval Rajnikant Shah
Yeah, yeah, very much.
Vivek Gautam
Hello.
Deval Rajnikant Shah
Yes. Yes. Yes, you’re audible.
Vivek Gautam
Yes. Congratulations on good set of numbers. Sir. My query is on the regulatory compliance track record of our company and how has been our experience with FDA and other regulators and what do we do it so and what are our differentiators and MOT in it? And second is about the ultra competition intensity in the US market, heard that generic prices are reducing day by day and lot of competition is increasing. So how do we tackle that, sir? And a few words on the expected growth rate and CAGR growth rate and opportunity size for us. Thank you.
Swapnil Shah
Okay. No, thank you. Thank you very much for your question. So regulatory compliance wise, you know, we’ve been so far audited four times. Last audit happened just very recently which we got approved without any observation. What is important for us is we also regularly get audited by our customers. Right. So our customers are largely large pharmaceutical companies across the globe. You know, all top names that you can think of in the space.
They are all our customers. So very, very regularly we get audited by customers. So there’s a continuous compliance that happens for APNAR you know, it’s just not that FDA comes and then the audit happens every other month. There is a large customer auditing us on multiple fronts. So that helps us keeping our systems in check, continued compliance on the manufacturing side of the business. So that’s probably answer your regulatory questions.
Second one was on the revenue side. So we expect. Yeah, so we expect the growth trajectory to continue with the number of products that we have that will go live, that will get launched in this quarter, in coming quarters, both on our own products as well as on our CDM or cmo. I think we touched base on the exact numbers in the earlier question. So I feel the growth is going to be strong with all that we have planned and whatever that is going to to be launched. Coming to competition as well as as far as US is concerned, competition.
You know, we like any other company, you know, the competition is always going to be there. But how strongly we are placed in terms of combating the competition. As you can see, we have two business models right on the US on the regulated side, one is of our own product and another one is on a CDM or CMO side. Our revenue streams are also multiple revenue streams that we get for our own product as well as CDM or cmo. So competition can come. But our dependency on each product revenue stream is not more than 2 to 3%.
So even if that one product can give me a lot of competition, my revenue drops from 3% to 1.5% or maybe 2% in overall scheme of things. You look at it, my revenue is dropped only 1% from a competition in case if that one product can give me that kind of competitiveness.
So overall we feel we are very balanced as far as company is concerned with multiple business verticals both on the CDM or CMO as well as of our own product. Also on the US Side, being with the manufacturer in the US we cater to control substance as well as government business. Again on the control substance and government business, our competition with the local manufacturer in the U.S. right. So we don’t compete with foreign manufacturing sites largely. So also on that account is also limited. So I think we feel we are very balanced, well placed as far as competitiveness is concerned.
Vivek Gautam
Thanks a lot, sir. And I was talking about the price erosion of generics in US markets. How much is the status today and is it decreasing a lot? Price erosion or and further was about the injectable plant status and any new kitchen plan of molecules. Any molecules?
Swapnil Shah
So yeah, price erosion is varied. You know, it’s not consistent across the products. Right. So in some products in fact we’ve seen the prices have got a little better also. But of course you know, big competitiveness is there. The price do get eroded.
But as I said, our base portfolio has still yet to achieve its optimum. And with the new launches coming in, both are on our own product on the CDM or cmo. Even though there might be a little competitiveness on the marketplace, we feel our growth is going to be strong with the new launches that is planned. So that’s there. On the injectable side, as we said, we’ll start that work. We just concluded our IPO process as you know, so we will start that work. On the R and D side we already started some work on the development side of the products. But as we move forward we’ll continue to update on that side of the business as well.
Deval Rajnikant Shah
So just to add on the erosion as compared to parafore, we are not into parafore at all. We are already into only generics. So the products are already in the generic category. So therefore the impact of an erosion though being there is not as significant as generally it is feared. And again just to add to what Sapnin said, we have a plant in us. We are focused on the CDM or CMO side as well as on the controlled substance side. All of our partners are predominantly supplying to government or they are of controlled substance manufacturers.
In this space the competition is relatively limited. I think there are not more than four or five players who have the similar capability of offering similar solutions. And we have a very strong backup from India. So our regulatory plus our R& D there’s a very big team sitting in India. So that way we are very, very effectively competing and I think our pipelines are very robust. So that point of view.
Vivek Gautam
Excellent sir. And any plans of equation of any molecules something?
Swapnil Shah
We will look to acquire product assets. You know we are in the process of evaluating a few products as we move forward. If there is any update we’ll…
Deval Rajnikant Shah
Sure that’s a part of the strategy. Yes.
Vivek Gautam
The last question is about the tariff here under neutron government for how do we stand out and our pharma, Indian pharma sector is with aloof from that?
Deval Rajnikant Shah
New government, you mean Mr. Trump?
Vivek Gautam
Trump, yeah. Tariff deposition threat.
Swapnil Shah
We don’t know anything right. So I mean it is anyone’s gas as you speak. So we will, we’ll watch, we’ll continue to look at…
Deval Rajnikant Shah
You know we are for the regulated markets. Nothing goes out of India. Everything is manufactured in usa. So that way our thesis is anyway dealing with what he feels. So I don’t see any conflict rather there could be a little bit of support. But very honestly we are agnostic to that.
Vivek Gautam
Okay sir, thanks a lot. Very nicely replied to all the queries. Keep up the good work. Congratulations once again sir.
Deval Rajnikant Shah
Thank you sir. Thank you.
Operator
Participants, please restrict yourselves to two questions. If you have any further questions you may rejoin the queue. The next question is from the line of Aman Goyal from Axis Securities. Please go ahead sir.
Aman Goyal
Sir, thanks for the opportunity. I am a question is related to CDMO part. We already have a 21 approved products. So what is the timeline to launch all these products in upcoming quarters and how do we see the 69 new products in the pipeline? So currently just try to understand that our top line that we have at 214 crore last year the kind of opportunity and the growth we are looking. And with these 21 new products what is the market size that we are tapping it now?
Swapnil Shah
Yeah so as I said you know 21 products that we have got launched at a different time endpoint. I have a partner, I have partners. So you know we probably so far in nine months we have probably covered two months, three months here or there depending upon when product was launched. Right. So next year or maybe next this quarter in the next year we expect all this 21 to give us the complete exposure or three months as well as full year. You know and the new launches of the 69 that we have and that will come at a different stage. Out of 69 as I said about 1517 are expected to launch in Q1 on the cities PMO CD CDMO side. As we see there are launches are happening in current quarter.
So that will drive our growth significantly. Now from the revenue standpoint coming out of CDMO CMO we expect next year CDMO CMO revenue to be around 25 to 30 million dollars. We expect our revenue for next year to be around 706. I think 7 to 700 crores this year will probably end at about around 410 to 440 crores plus minus 5%. So large part of that about that will also neglect.
Deval Rajnikant Shah
So we are in process of accumulating the numbers with which we are working currently. That’s a very very strong number sir.
Aman Goyal
So in terms of the margin, so consolidated margin for nine month is 27% 25% now. So what is the right range of margins we can look now?
Deval Rajnikant Shah
See we are not at this point in time giving any specific margin guidance. But having said that am I audible? Yes sir. Having Said that as you see our major contributor right now is the regulated markets where they will explain there about 40 odd percent margin run rate with practically nothing coming out of emerging market next year. We definitely expect an improvement in the margins driven by a strong growth from the CMO side. CMO side as well as our own product line in regulated market and some positive margins coming from the EN side. So while I’m not doing anything, definitely expect a decent growth in the margin. But as we go forward in subsequent quarter we will give more clarity.
Aman Goyal
So sir, as I was reading the RF…
Operator
So sir, as I was reading the RF… I’d like to interrupt here Mr. Aman Goyal. If you have any further questions please rejoin the queue.
Aman Goyal
Thank you.
Operator
Thank you. Thank you. The next question is from the line of Divyaxa Agnihotri from HDFC Securities. Please go ahead.
Divyaxa Agnihotri
Hello. Am I audible? Hi sir. Congrats on your good set of numbers. I just had a couple of questions. First on your CDMO side. So what is your customer contraction like your contribution from your top five or top 10 customers, how is that look this quarter? That’s my first question. And the second question would be on your backward integration plans and your setting up for your greenfield unit. So is there any timeline, any capex, any details regarding that setup? Those are my two questions.
Deval Rajnikant Shah
We have a significant number of products from say our top two customers in on the CDMO side. So therefore taking customer wise sales is not correct. It is more on the product wise. From the PDM supplement there are more than 20 products. I think 10 or 11 or 12 products are from the top two customers. Then we have another two or three other customers each of whom we have one or two or three products.But again all these products have not reached their optimum. It will start getting at an optimum level in the coming year.
Divyaxa Agnihotri
Okay. So and on the API on your greenfield expansion that you have mentioned in your presentation. So regarding that, any details you have like the timeline or capex for that greenfield expansion?
Swapnil Shah
Reg market facility to commence this quarter and two of our key products we are looking to backward integrate. Now that could be both on the CDM or CMO, as well as on our own product side as well as some could be on our emerging market,
Right? So good part of our current existing supply probably in some point of time in future, probably about after a year or so will be from a in house manufacturing sector.
Divyaxa Agnihotri
Okay. So and if I could just squeeze in one small question regarding your IPO proceedings. So what is the timeline for like the production of your steroid injections in a plant or facility. So the 107 crores that you have set aside for that, when are you planning to use that amount?
Deval Rajnikant Shah
The CAPEX for the injectables I think will be starting. We have started the groundwork now. So actual CAPEX will start from Q1 of next year and we expect it to get over by within next 18 months to 24 months. So overall time frame for utilization is 18 to 24 months.
Swapnil Shah
Also one critical update here is the site is our existing oral solid site, right? So that is not a different site that we are looking to establish our injectable end. Right? So the product, we already have a land with us. The supporting infrastructure is already created. Right. So the labs are there, the vault is there, cage is there, warehouse is there. So you know it’s not a different location as you speak.
Deval Rajnikant Shah
Another strategy for which we intend to use our general corporate purpose here. But for is we are also looking at one more greenfield type in India to cater to the mid tier emerging markets where they are not the ones which we can cater from our Ratna switch side. So that work of scouting for that site and all these things have started. You will expect announcements as we form up that jetties also just from.
Divyaxa Agnihotri
Okay, so that’s all from my side.
Deval Rajnikant Shah
Thank you.
Operator
Thank you. The next question is from the line of Shaurya Puniani from Arjav Partners. Please go ahead.
Shaurya Puniani
Hi. Am I audible?
Deval Rajnikant Shah
Yeah.
Shaurya Puniani
I just have one small question or clarification. So you said a CDM of business is for nine months is 12 to 13% of total revenue. Right?
Deval Rajnikant Shah
For nine months it is about. Okay, total revenue but it is about 19% of the regulated revenue in three months and 24% in nine months. See what is CMO is only in the regulated side. We don’t do anything from here.
Shaurya Puniani
So it’s 24% of the revenue. Okay.
Deval Rajnikant Shah
And that is again not optimum. As we move ahead, this percentage will rise.
Shaurya Puniani
Okay. Okay. Okay sir. Thank you. That was the only thing.
Deval Rajnikant Shah
Yeah.
Operator
Thank you. The next question is from the line of Darshil Jhaveri from Crown Capital. Please go ahead.
Darshil Jhaveri
Hello. Good evening sir. Thank you so much for taking my question. Firstly congratulations on a great third of results.
Sir. So I. I just wanted to know, I think I maybe I missed it. So what kind of growth outlook we’re seeing to for the year end and next year, sir.
Deval Rajnikant Shah
So as Swapnil mentioned, this year the fourth quarter will be very strong. We expect to end this year anywhere in the range of. I don’t want to use word 420. But say 410 to 430, 440. Next year we expect the growth at least on the top line to be more than. Much more than 50, 60%. And the bottom line growth should be nearly doubling than what we are anticipating this year. So this year we should end up at the patch of around 55. Around that this year, 55 to 60 this year. But again don’t take it as a guidance. We are working on it. But yes, we do see a very, very strong growth impact. Much more than the top line growth.
Darshil Jhaveri
Correct? Correct sir. So this, so the emerging market like currently so we are breaking even on operating level. So on an optimum basis like we should, we can do how much in that business emerging markets like…
Deval Rajnikant Shah
See, yeah, as we explained this was an acquired business which we consolidated for the first time in 24 when we acquired. The whole business model has been changed. So now we are moving completely away from a P2P your business to more of a distributor and a CMO based on registrations of niche products in all these multiple geographies. So registration pipeline as we have given in this is more than 530, 540 products as we speak, 237 products already registered. But it takes anywhere between nine to 12 months once the product is registered to do the tire and start marketing. So even next year we will not reach the ideal level of margins. But next year our EBITDA should definitely improve in higher single digits. Ideally by 26, 27, 27, 28. Our target is it will be definitely in higher team.
Darshil Jhaveri
Oh okay. Okay. Okay. Fair enough sir. Got it. And so just last question from my answer. So total how much capex you’re looking in the next two years that we are planning to do a ballpark figure will also do?
Deval Rajnikant Shah
More than 200 crores.
Darshil Jhaveri
Oh okay. Okay.
Deval Rajnikant Shah
In terms of our drawing board.
Darshil Jhaveri
Correct? Correct. Correct sir. Got it sir. Fair enough. So that’s it from my side. All the best. Thank you.
Swapnil Shah
Just to add, just to add one more thing on the mid tier manufacturing side, products we already have. Right. So we already done. All the R and D spent on the R and D on the product is already done. What we need is just infrastructure to cater to those markets. So that’s where the strategically we are looking at it. Also on emerging market as we touch based upon the margins. So we have total 537 products under registration. So that will also significantly add as each product gets approved significantly add our current margin profile and product mix will also significantly change.
Darshil Jhaveri
Okay, fair enough. Thank you sir.
Deval Rajnikant Shah
Thanks.
Operator
Thank you. The next question is from the line of Rohan Vora from Envision Capital. Please go ahead.
Rohan Vora
Hello. Thank you for the opportunity. Yes, one clarification on the regulated non CDMO part. So as I understand we have 22 own molecules that are coming commercialized today and in Q3 probably that contributed to around 70 crores of revenue. So just wanted to understand what is the addressable market for these molecules, you know and what is the Runway that is still left for these molecules in addition to the new molecules that you will add to the regulated part of the portfolio. That was one. And the second question was, you know, how do we deal with the, you know, the threat that we do have our own portfolio in the regulated markets and then we also do CDMO for the partners. So how do we make sure that they are secure enough to give us work? Thank you.
Swapnil Shah
Yeah, thank you. So I would look at it 22 plus 5 which we are going to launch in this quarter, right. So it’s about 2728 products. So the way I look at it, out of those 2728 products, 30, 35% of the portfolio will reach its optimum in next six to 12 months as we continue to gain more market share on each side of the business. 30, 35% of the portfolio has either reached their optimum market share as we speak or soon going to be reaching. And 3035 product is at a level where I don’t see a major drop in terms of market share that we have one major increase on the market share. So largely I would say out of those 27, 28 products of our own product, this is broadly I would see going forward in terms of where we see those products to be.
Deval Rajnikant Shah
So the market that can take us to a turnover of about 250 odd crore. Just you know, taking an average of 7 to 10 crore per product more or less. Correct. I’m not talking of 51 pipeline products that we will keep on adding every year. We’ll keep on adding new products. That 51 pipeline products over a three year period can create an opportunity of almost another, I don’t know, maybe 7,800 million. But and you know targeted market share is in the range of 20, 25%. But we’ll see as and when we move ahead we will have a strong growth coming from one product portfolio in a sustained basis.
Swapnil Shah
And also on CDM or CMO side, as you questioned we as Sanjay Bhai said in earlier discussion, there are not many companies that offer end to end solution to a partner so right from R and D to regulatory support, you know, getting product from conceptualization to scale up to filing to commercial manufacturing, complete regulatory support, complete analytical support back home RD that can even further enhance the process how the cost can be leveraged upon. You know there are a lot of factors that we bring on table for our partner apart from our manufacturing infrastructure that we have. So we feel that not many companies in our size today are able to offer. You know now with the ETIPs coming in we can go as go back in terms of EPI manufacturing also. Right. So right from the intermediates to a distribution of finished goods, everything comes under one umbrella.
So I’m sure you also know a market well. I mean there are not many companies or other. I personally don’t know in our size any company has that kind of capability to offer to our CDMO partner. So I think that makes us unique, that makes us different and that will continue to continue to leverage upon it and gain more business. On that side.
Deval Rajnikant Shah
There is no conflict between my TDM or CMO as well as my own products. The whole philosophy is different. In own products we partner with large pharma companies and on the CDM or CMO side they are not my product but it’s focused on controlled substances and government.
Rohan Vora
Okay, okay, understood. So just one clarification. So what you said was that this 27 molecules will give us a you know, peak of 250 crores. And the additional 50 molecules you said was 7, 800 crores at the peak?
Deval Rajnikant Shah
Yeah, more or less.
Rohan Vora
Yes. Great, great. Thank you so much. I’ll get back in the queue.
Operator
Thank you. The next question is from Dhwanil Desai from Turtle Capital. Please go ahead.
Dhwanil Desai
Hi, good afternoon everyone. So my first question is on the U.S. business. I think you know we’ve been tracking lot of pharma companies, you know, we were operating in U. S market and you know, complex generics, injectables, you know, all kind of, you know, relatively high entry barrier segments. So there the margin profile is very inferior to what we are doing today. So can you throw some light as to what are we doing different? Is it the combination of TGT and control substance which is giving us this kind of a margin? You know, what is the secret source of such a high margin for us?
Deval Rajnikant Shah
Tell you margin for us, just the revenue for us is one of the profit shares, right? So other companies, the gross revenue comes in the P and L account, what they sell in the market. So for us the revenue stream is a profit share. So my major revenue Comes from there. So that gives me the, that gives me a better margin profile as compared to the other companies.
Dhwanil Desai
Understood, understood. So you’re. You’re basically profit share and then the cost below there is no RM cost involved. So your EBITDA margins are pretty high.
Deval Rajnikant Shah
No, no, no. So there is a mix of license fee plus profit swabs and my manufacturing margin and 50% profit share for the which I shared from my marketing partner. So what they will say that because of the mix of these three, the sales that is booked in my balance sheet is actually a significant portion is a profit share where there is no cost. Actually that is having said that the two other factors. One product identification. Second one philosophy is we generally identify products which are relatively niche under penetrated.
We have a very different philosophy. And then these are the products where generally large big pharmas are not interested but still they want it as a part of their pipeline. So that is where we fit in very nicely. We don’t compete with them. Rather they are all our partners. You get my point. So that is another factor which is helping us a lot. And then CDMO CMO is a very different topography because of the focus on partners serving government which are long term contracts with practically low price erosions and then the control substances where it has to be from a plant based out of US or therefore again I’m not really competing with a Large number of U.S. fDA plants situated in India servicing these markets.
Dhwanil Desai
Got it, got it. Very helpful. So sir, is it safe to assume that CGT plus control substance sale would be you know, if you take out the CDM or so that will be a major portion of the US market revenue maybe 60, 70%.
Deval Rajnikant Shah
No, no, no. So my own product else. But you may consider it a part of the own product portfolio.
Dhwanil Desai
Okay, okay, okay, okay. So second question on the CDMO side. So I think out of this, you know molecules which are currently commercialized and in the pip how many of them would fall into generic category which are off patented and you know how much of them any on the patented side of it that also we are working on on the CDM or CMO side. How should we look at it? And in the value chain, you know are we doing the formulation CMOS or it is from the API level. You know where are we that in in terms of value chain?
Swapnil Shah
So we are a formulation focused company. Right. So API is something which complements our whole proposition of a CDMO as we speak. So you know, as an API standalone CDMO that is not the business we are looking at it as we speak. So that’s one thing. Now in terms of generic, non generic, currently large part of a portfolio also on the CMO is a generic portfolio. We have some products that we are working on the NDA side of the business on the cdmo.
So these are again the generic products but they are the new applications that we are filing with fda. So that is the unique work that we are doing on the CDMO side. But again these are still, as I said, these are off patented products.
Deval Rajnikant Shah
100% generated portfolio. The long term vision is we want to start working on the NC’s et cetera as a part of the CDMO portfolio. But it’s a long term vision, not in the immediate future.
Dhwanil Desai
Got it. And the last question is the biggest risk in generally US focused market is the US FDA and we have a single plant in Atlanta. So how do we think about this risk? What are the measures, you know, that we can take? Apart from of course ensuring that the quality standards are adhered to, the customer visits happen. So you know, all the systems are kind of, you know, upgraded but US FDA risk still remains. So any thoughts on de risking on that part of it?
Swapnil Shah
We will look into it. Of course there are thoughts around it. But however, as far as US manufacturing is concerned, that caters to very specialty segment. It doesn’t cater to the normal segment that we usually see how foreign plants or how plants in India, China and other countries are catering it to. So that’s one thing. Second thing is from a compliance standpoint, you know, I think the good part for us is, you know, we get audited regularly by our customers, large pharma companies, global that you can think about, they regularly audit us, you know, so that gives us a continuous compliance CGMP as we speak to our current quality system. I think that is a large contributor to our 0483 in our FD inspections that have happened so far, you know, and that will continue to grow. That will continue to happen because our business model is we are not going to change. Right. It will continue to be what it is, we’ll continue to expand on that side and then customer audits are warranted. It’s, it’s, it’s going to happen as we move forward. So I think that gives us a lot of comfort from a compliance standpoint.
Dhwanil Desai
Thank you. All the best and fantastic numbers. Okay, thank you.
Operator
Thank you. The next question is from the line of Hardik Gandhi from HPMG Shares and securities Private Limited. Please go ahead.
Hardik Gandhi
Hello sir. Thank you for taking the questions. Am I Audible? Hi sir. So I just wanted to know a few questions first. What are the utilization utilization levels right now for our different plants?
Deval Rajnikant Shah
Average, in India the population is at about 60, 65%. Little high, maybe in the range of 65 to 70. In US it’s about 50% right now. But we expect that because we have significantly augmented this capacity only in the current fiscal, it has gone up by almost five times as you would assume, as if you compare with the DRS numbers. And that has been done in anticipation of the significant tailwind on the CDM or CMR side. We expect this utilization to India to 60, 65% in the next year FY26.
Hardik Gandhi
Understood, sir. And along with this, since we mentioned that, you know, in US currently, currently we are selling CDM forms a small part of it, but we expect to expand that portfolio. I just wanted to know other. Other products, which is the marketed products which you have your own partnership with other brands. Right? So on that front, what is the customer concentration like for the top five customers? What is the percentage?
Swapnil Shah
Top five customers give us about 65% of revenue on our own product side.
Deval Rajnikant Shah
But again, number of products, if you look top five in terms of number of products, would not be more than 20, 25%.
Hardik Gandhi
Understood? Understood. And just the last one, on the API front, we are saying we’ll backward integrate for even the US plant. Is that correct?
Deval Rajnikant Shah
No, no, no, no. API is being set up in India.
Hardik Gandhi
Correct? Correct. But we supply US products. We’ll supply the API for US products from here.
Deval Rajnikant Shah
Yes. We want it to be approved or approvable by all regulatory authorities, including U.S. fDA.
Hardik Gandhi
Understood? Understood. Yeah. Thank you. Thank you, sir. That’s it. From my side. Congratulations on the good set of numbers.
Operator
Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Mr. Swapnil Shah for the closing comments. Thank you.
Swapnil Shah
Thank you everyone. So, good set of questions. I take this opportunity to thank everyone for joining the call. We will keep updating our investor community on regular basis for incremental updates of our company. I hope we have been able to address all your queries. For any further questions or information, kindly get in touch with me, my team and our IR advisors, our Strategic Growth advisors. Thank you once again. Thank you and have a great evening. Thank you very much.
Operator
[Operator Closing Remarks]