Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Senores Pharmaceuticals Ltd (NSE: SENORES) Q3 2026 Earnings Call dated Jan. 20, 2026
Corporate Participants:
Swapnil Shah — Managing Director
Deval Shah — Chief Financial Officer
Analysts:
Gaurav Pinani — Analyst
Unidentified Participant
Unidentified Participant
Abhishek Kumar Jain — Analyst
Unidentified Participant
Kashish Thakur — Analyst
Naitik Mohata — Analyst
Ravish Shah — Analyst
Pranav Chawla — Analyst
Poojan Shah — Analyst
Viraj Shah — Analyst
Forum Parikh — Analyst
Presentation:
Operator
Gentlemen, good day and welcome to Sonara’s Pharmaceuticals Limited Q3FY26 results call hosted by Ambed 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 then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr.
Gaurav Pinani from Ambit Capital Private Limited. Thank you. And over to you, sir.
Gaurav Pinani — Analyst
Thank you, Ikra. Good evening everyone. On behalf of Ambit Capital, I would like to welcome you all to the Q3FY26 earnings call for Senoris Pharmaceuticals Limited. Joining us from the management today we have Mr. Swapnan Shah, the Managing Director, Mr. Sanjay Majmudar, the Chairman and Mr. Deval Shah, the Chief Financial Officer. I thank the management for the opportunity to host this earnings call. Before we begin, I would like to point out that this conference call may contain some forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on the date of this call.
These statements are not the guarantees of future performance and involve risks and uncertainties. That are difficult to predict. We can now begin with opening remarks from Mr. Swapnan Shah post which the forum will be open for an interactive question and answer session. Thank you. And over to you, Mr. Shah.
Swapnil Shah — Managing Director
Thank you, Gaurav. Good afternoon everyone. Thank you for joining us on Synergist Pharmaceuticals Limited’s Q3 and FY9 month FY26 earnings conference call. We have uploaded the results, press release and investor presentation on the stock exchanges and company’s website. I hope everybody has had the opportunity to go through the same. Building on our established strategies, we have delivered a strong performance across segments for the quarter and nine months of FY26. Our nine month results are in line with or slightly ahead of our annual guidance and we remain confident of achieving our FY26 targets of 50% of top line growth and 100% of PAT growth over FY25.
Speaking about the segmental performance, revenue from regulated markets grew by 60% YoY in Q3 FY26 and by 71% in Q3. Nine months FY26 driven by product portfolio expansion, prudent selection of sales channels and differentiated go to market strategies. Our ANDA portfolio continues to grow through in house development and strategic acquisitions. As of December 2025, we are proud to have a portfolio of 46 approved ANDAs these ANDAs collectively cover more than 137 ANDA products. Over the last year.
Our portfolio of AND has nearly quadrupled growing from 12 ANDAs as of December 24 to 46 ANDAs as of December 25. Apart from the existing portfolio of 18 ANDAs which have already been launched, we have 28 approved ANDAs having 100 plus trends available for launch and 22 more molecules involving 50 plus strains under development. This provides a strong pipeline of products which are expected to be rolled out over next quarters. Our CDMO CMO segment is also witnessing a steady traction and scaling up.
Our portfolio now stands at 16 commercial products encompassing more than 55 strengths. The motives our CDM or CMO segment comes from being an end to end solution provider for customers right from development to scale up to exhibit batch to supply chain planning for commercial production as well as complete regulatory support including pre and post approvals. I’m pleased to share that we have completed acquisition of 75% stake in Apnar Pharma last week. The balance 25% is expected to be completed by Q2 of FY27.
Given our strong growth momentum and product expansion across ANDS and CDM of cmo, we sought to diversify manufacturing geographically. The acquisition of Apnar Pharma, which is USFD approved facility and expansion ready infrastructure, provides strong strategic benefits and positions us to sustain growth over the coming years. Apnar’s facility is relatively new and already has many constructed clean rooms for quick expansion. In addition to the U.S. The plant is also approved by UKMHRA and Health Canada.
This immediately enables us to penetrate deeper into in the regulated markets of UK and Canada where we currently have very limited presence. In addition to market access, the acquisition also includes 5 up to DS which is expected to give at least 16 to 18 million dollars in revenue in next 12 to 15 months. The addition of this USFD approved facility significantly enhances our manufacturing capability and flexibility. It will open opportunities to shift manufacturing of select products from US to India where US based manufacturing is optional.
Diversified manufacturing enhances operational agility, supporting faster scale up, quicker product launches and sustained growth momentum. It also strengthens our ability to pursue a broader range of CDM or CMO opportunities, leveraging cost advantages across both facilities. The regulated markets, our largest vertical, continues to deliver consistent growth driven by portfolio expansion, new customer additions and deeper market penetration supported by healthy pipeline and long term CDMO CMO contracts.
We have clear visibility for sustained growth and profitability in years ahead. Furthermore, in line with our strategy to strengthen our presence in the US we have set up Zoraya Pharmaceuticals, bolstering our operations and product development strengths in the U.S. Zora is equipped to manage the full life cycle of of pharmaceutical commercialization and this expansion would focus on direct distribution and marketing of some strategic products in the US moving to emerging market business revenue for Q3FY26 grew by 48% on yoy basis.
As we had highlighted earlier, EBITDA margin has significantly improved towards mid teens range. Now we achieved our highest ever quarterly revenue EBITDA and PAT in the emerging market business in Q3. Importantly, the business is now cash flow positive as well. During this quarter we received approval of 56 new products bringing our total portfolio of 450 registered product as of December 2025. Additionally, more than 850 products are currently under registration. Shift towards niche molecules and a refined go to market strategies is driving improvements across key metrics in emerging markets including better pricing and margins.
Overall, the emerging market business is demonstrating a steady momentum in both growth and profitability. We are also in the process of obtaining PICS approval for our Chatral Manufacturing facility for emerging markets. This approval will enable us to expand our footprint in key mid tier markets such as Vietnam, South Africa and others. Turning to India business, our branded generic business has continued to build on a strong momentum seen over last few quarters. Revenue for this quarter stood at about 10.5 crores, an increase of over 6s on YoY basis for nine months.
The revenue from Brande Generics stood at about 31 crores, growing more than seven times on a YOY basis. On a consolidated basis, we continue to remain a strong focus on cash flow generation with operating cash flows demonstrating a steady upward trajectory. Despite robust business growth, our EBITDA to operating cash flow conversion has improved significantly over last year reflecting enhanced operational efficiency disciplined working capital management. Our cash flow performance has shown consistent and sustained improvement and we remain confident of maintaining further strengthening this metric going forward.
All in all, we have consistently delivered on our commitments in both revenue and profitability, underscoring the effectiveness of our strategy and execution. Our focus remains firmly on establishing business model across both regulated and emerging markets. We see a long and promising growth trajectory ahead for Sonoras and are well positioned to capitalize on the same. With our deep industry expertise and extensive experience, we are confident in our ability to continue driving sustained and profitable growth in the years to come.
With that, I would like to hand over the call to Mr. Deval Shah, Chief Finance Officer to take you through the financial operation performance. Thank you. Over to you Mr. Deval.
Deval Shah — Chief Financial Officer
Thank you. Warm welcome welcome to everyone on our Q3 and 9 months FY26 earning call. I will take you through our financial and operational performance for the quarter and nine months period ended December 2025. Starting with the quarter’s performance, our consolidated income for Q3 FY26 stood at 175 crores reflecting a strong growth of 64% on yoy basis. Growth was broad based and driven by both regulated as well as the emerging market businesses. Revenue from regulated market grew by 60.5% YoY and came to 113 crores.
This was driven by steady product portfolio expansion and scale up of the CDM or CMO segment. Revenue in the emerging markets grew by 47.5% yoy and came to 38 crores in QTF. FY26 India branded generics business due more than six fold on yy basis with revenue for Q3 coming to 10.5 crores. Consolidated ER for Q3 FY26 stood at 54 crores growing by robust 86% on y basis. IA margin came to 30.9% improving by 260 dpn on yoy basis. Even on a sequential basis FITA margin has improved by about 30 bpm. Profit after tax and minus interest for the quarter grew by around 85% YoY and came to approximately around 32 crores coming to the nine month performance.
The consolidated income for nine months FY 2026 stood at 474 crores showing a strong growth of 65% Y O wire. This is driven largely by the regulated market business. Revenue from regulated markets for nine months of FY 2026 stood at approximately 310 crores. Revenue from inverting market grew by 17% while came to 99 crores. Revenue from India branded Jamie’s business grew by more than 7 times since 231 crores for 9 months. EBITDA for 9 months FY26 238 crores growing by a whopping 87% on yoy basis.
IBTA margin improved by 340bps on a yoy excluded 29% profit of the tax and minority interest for 9 months FY26 stood at 84 crores, more than doubling on a ROI basis. Pat margins for nine months of FY36 2.17.7% compared to 14.2% on the corresponding period of last year. This is an increase of 350bpi. As Mr. Softgee has highlighted, we are maintaining a strong focus on cash flow generation. Operating cash flow for 9 months for FY26 exchange at around 51 crores showing a significant improvement over last year.
To summarize, we have witnessed a strong performance across segments during the quarter and for the nine months for the current year. We are well positioned to continue this momentum and confident of delivering sustained profitable growth going forward with this. I would now like to open the floor for questions.
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 N1 on the Touchstone telephone. If you wish to remove yourself from the question queue you may press Star. 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 Pal Valar from three Netra asset managers. Please go ahead.
Unidentified Participant
Hi sir. So I just wanted to know that after doing the Park Pharmaceutical limited acquisition how much margins expansion we can expect from it? So what kind of synergies we will get in terms of if you could quantify that. So this was my question.
Swapnil Shah
Yes I. This is swapin. So currently the contribution from APNAR will be as stated. You know we are expecting about 120 to 150 crore kind of a revenue from APNAR in FY27 as we speak. Also we’ve stated that this quarter itself will be cash flow positive from Apnar facility as three products are already going to be launched within this quarter from the facility from that particular facility. It is very early to say what kind of margin expansion that will happen from APNAR as we speak however we see margins expanding when we reach that optimal number of utilization of that facility.
And being on both the geography I think a lot of synergies can also be created between both manufacturing locations. So that’s what we feel the APNAR will add value to us.
Unidentified Participant
And secondly if I see regulated market, emerging market API and branded generic. So going forward how much revenue contribution we can get from these four business verticals.
Swapnil Shah
So on the branded generics side of the business we feel that we should be able to conclude this year between 40 to 50 crores and next year could be another 80 plus crores is what we are projecting. On the branded generic side on emerging market side of the business we feel we should be able to do about 170 to 180 crores. The revenue next year and API said is a small contributor. I think we don’t beyond a point focus on the revenue because it’s a strategic play for us largely for backward integration and some strategic Products that we want to backward integrate.
So that’s the API vertical for us.
Unidentified Participant
Going forward we will mainly focus in terms of revenue contribution. We will have a large number of revenue from regulated market. Right?
Unidentified Participant
That’s right. That’s right. That’s right.
Operator
Thank you. Before we take the next question, a reminder to all. If you wish to ask a question, please press star and 1. The next question is from the line of Abhishek Jain from Elfacurate Advisors Private Limited. Please go ahead.
Abhishek Kumar Jain
Thanks for opportunity and congratulations for a strong set of numbers. Sir. Sir, my first question on the regulated market side. So in last nine months, how is the revenue mix evolved in terms of the own anda products sourced and the CDMO and CMO business?
Swapnil Shah
Yes. Hi Abhishek. So on a regulated market we have two verticals. As you know, our own products and the CDMO CMO. The mix today on the split is largely about 55% on our own product and about 45% on the CDMO CMO side of the business. And we feel probably full year we’ll have about 60% of our own product and about 40% on the CDMO CMO side. When we conclude this year for the next year we feel more or less this mix will continue. Maybe our own product we may be able to get about 65% and CDM or CMO’s contribution could be 35%.
Largely because with the Apnar acquisition, lot of our own products will be also giving us a much, much better realization as we speak.
Abhishek Kumar Jain
Got it. And sir, how is the gross margin difference in on products and the CDMO business? How much the difference is.
Deval Shah
CBM or CMO is slightly lower than our own products. I say 4 to 5% or 5 to 6% lower than the own products. But overall margin, gross margins are lower than India. Margins are at 40% for the US regulated business.
Abhishek Kumar Jain
So in the coming quarter we would be able to sustain the margin of 40% plus percent in this segment.
Deval Shah
Yes, I think we should be able to sustain or even improve upon by 1%.
Abhishek Kumar Jain
Okay.
Deval Shah
More and more products coming in. These own products always have a better margin for us.
Abhishek Kumar Jain
Understood. And so in emerging market we have seen a very strong jump in EBITDA margin in this quarter. So just wanted to understand the what is the reason? Is it because of the change in revenue mix or is it because of that operating leverage benefit?
Swapnil Shah
Yes, Abhishek. So in emerging market, if you would have last call. Also we said there were some products which we got approval for but we could not Generate the commercialization in last quarter. I think lot of those commercialization have happened over this quarter. Like quarter ended in December and that commercialization will continue. As you know we got 56 product approval just in last quarter. So those commercialization of all 56 will happen or at least large part of 56 will happen in coming quarter.
So we feel the growth trajectory also on the emerging market should continue. And our per unit metrics has also significantly improved. So we are at about close to 2 rupees per unit today as we speak on our emerging market manufacturing which we feel will continue to drive up as the product mix will continue to change as we get more approvals and we commercialize more products in different markets as we speak.
Abhishek Kumar Jain
Got it. And sir, in emerging market, how is the current revenue mix between distributor lead models P2P and ON brand?
Swapnil Shah
It’s difficult to give that exact number but it is well balanced as I can say with the distributor led direct export businesses continue to see significant uptick over last three to four quarters which will further grow. So revenue mix from an export based dollar based revenue will continue to expand from where we are today into next four to six quarters. Because all the registrations that we are talking about today which are we have 450 and there are 800 plus is going to come in therefore direct exports.
So our dollar revenue realization will significantly be increasing in next four to six quarters.
Abhishek Kumar Jain
Got you sir. Thank you sir. That’s all from my side.
Operator
Thank you. The next question is from the line of Maitre Seth from Choice Institutional Equities. Please go ahead.
Unidentified Participant
Hi. Congratulations on great set of numbers. Just one question. What sort of margin EBITDA margin are we looking at for FY26?
Deval Shah
FY26? I think we already are at 29% so we should be a percentage more of around 30%. Anyhow by end of the year
Unidentified Participant
Plan date, total,
Unidentified Participant
Blended total. And can we assume 100bps growth in FY27 or would APNAR see an increase of expenses and we will see 30, 30%.
Unidentified Participant
It’s difficult to quantify exactly. But there will be definitely a decent growth as we move into the fourth quarter. And then as we start Apnar we’ll be able to guide you better.
Unidentified Participant
Okay, network. Thank you.
Operator
Thank you. The next question is from the line of Kashish Thakur from Alara Capital. Please go ahead.
Kashish Thakur
Hi sir, thank you for the opportunity and congratulations on the website of Mango. Sir, two questions from my end. First just wanted to know what has been our organic growth broadly. Just speaking about Our own products, not including the acquired anda just asking about the own products. What has been that kind of organic growth in this quarter? And secondly, what care what has been the contribution from the control substance in the quarter?
Swapnil Shah
Hi Kashish. Thank you. So as you know we got a, we had a good product approval of the front in November. And so Definipron was launched in this quarter. That was an organic development that got approved. We launched it with Dr. Redis as we speak, which is public information as we move forward. Every quarter we have one or probably two launches, organic launches of a new product development that we have done. So that will significantly also drive our growth forward. As you know, we already currently have about 22 products that are that are under development.
Like some of them are already filed, some of them are at exhibit stage, some of them are at different stage of R and D which will continue to give that growth in next six to eight quarters for us of those 22. So it will continue our trajectory. Coming to control substance right now that’s not being quantified in terms of what is the control substance contribution largely speaking. But control substance has been about a 15%, 20% overall revenue that comes out of control substance which we feel will continue, you know, depending upon the quarter, depending upon the product launches.
We have about two control substance product launches in next year in the sense current FY27 year. So I think that will further grow our control substance revenue mix as well.
Unidentified Participant
I think. Thank you sir. Commercialization will now actually take traction.
Kashish Thakur
Understood sir. Thank you sir. So just one, one last question. One just wanted to know about the margin. So I think so you had quantified you, you just highlighted that our own products margin is a bit higher as compared to CDMO CDMO products, right? And I think so we quantify control substance in cdmo. So is the control substance margin higher as compared to blended average of CDMO or how is it.
Swapnil Shah
So you know, on the CDM or CMO side of the business, as you are aware, you know our margins are fixed, right? So product could be significantly bigger or significantly smaller. We have a set margins and set rolling plans that we manufacture based on our customers guidance, right? So depending upon what opportunity that we are taking up, our margins are more or less fixed. What happens is on our own product and the required portfolio coming in, there’s a significant launch plan over next six to eight quarters that we have, which we have said at least three to four, at least sometimes even a five per quarter that are the kind of launches that we have in next six to eight quarters.
So if you look at the growth plan, it’s those portfolio launches is significantly going to drive our growth. It’s from a margin standpoint. Again as Deval Bhai said, our own product gives us a better margin profile. Multiple reasons, right? It goes into various channels. There’s a government play that happens. There is a cross distribution to different different distribution channels. So that kind of significantly gives us that slightly better margin profile.
Deval Shah
Just to add, we also have certain products in our own product portfolio which are control substance. So there the margins are bound to be higher to answer your question.
Kashish Thakur
Understood sir. Thank you so much. All the best for your future.
Deval Shah
Thank you.
Operator
Thank you. The next question is from the line of Nishita from Sapphire Capital. Please go ahead.
Naitik Mohata
Yes, hello. Yes sir. So you mentioned FY26 top line guidance, growth guidance of 50%. But if we look at our quarterly revenue run rate we are doing much better than that. So like are you going to revise your guidance or do you stick to the 50% guidance? Because like we see a much better growth than that.
Swapnil Shah
Thank you. Thank you, Nishita. Right now, Nishita, I would suggest we expect our growth trajectory to likely to remain same at least for next few quarters as we speak. You know, and then I think that’s what.
Unidentified Participant
Just to add, you are right. FY26 we have guided very specifically about the top line and bottom line growth. We are on track in terms of top line. We are in fact slightly better in terms of bottom line. And these nine months results you can extrapolate generally our Q4 is equally or a little, in fact a little stronger than Q3 in general. So yes, we are bettering our profitability guidance of this year by a few, you know, marginally better. But it’s always better as a management to remain a bit conservative.
Naitik Mohata
Okay. Understood. Yes, that is it from my. Sir. Thank you.
Ravish Shah
Thanks.
Operator
Thank you. The next question is from the line of Ravish Shah from VRs Capital. Please go ahead.
Ravish Shah
Hi sir. Thanks for the opportunity, sir. First of all, congratulations on the strong performance. My question is relating to our product portfolio. So there has been some change in the way we have disclosed our product portfolio this quarter. Just wanted to understand a little bit more on that. So how should we look at our pipeline going forward and should one focus more on the number of andas or is it the strength we should look at which is a better metric to understand the results?
Swapnil Shah
Yes. Hi Ravi. So earlier so far we have always maintained as anda products which are individual strengths as our anda products. So that has been changed from a previous quarter to this year where we have. And we have. We are. We are disclosing both like anda numbers as well as individual anda products in form of strengths. You can look at us on both the trajectory. The reason behind that is individual strength as its individual business potential. Not necessarily all strengths work. Some strengths have a large government business.
Some strengths are heavy on the pediatric side of the business. Likewise each trend demonstrate a different distribution model and distribution margin profile and distribution different goal for us. So largely I would say both the parameter numbers are very important to measure strengths which are anda products as well as individual anda numbers.
Ravish Shah
Understood, sir. Thank you so much. And I have one last question, sir. You had 22 ANDAs under development and 28 approved ones that are to be launched in how many quarters do we expect to launch all these products? Also what can be the reasonable number in terms of product launches on an annual basis over the next three, four years time frame?
Swapnil Shah
So we feel all the 28 that are approved yet to be launched will be launched within next six to eight quarters. And out of 22, we feel at least we should be able to launch 10 products in next six to eight quarters. I think that’s a visible visibility that we have today.
Ravish Shah
Understood, sir. Thank you so much, sir. And all the best.
Operator
Thank you. The next question is from the line of Prince Chaudhary from Pink Wealth. Please go ahead.
Pranav Chawla
Hello. Yeah. Yeah. Yes. Thank you for the opportunity. Sir. I want to understand what sorts of. Products are part of purchase or stocking. And. And there is a lot of fluctuation. Like last quarter it was 11 crore. And this quarter it is 37 crores. So how we should look at that. Can.
Deval Shah
No, it is not there. Can you come again?
Pranav Chawla
Stock in trade, what is it? I want to understand what sorts of. Products are part of purchase of stock in trade. And also there is lot of volatility. You know, significant difference sequentially from 11 crore to 37 crore. So how we should look at that?
Deval Shah
So we have started the CMO exercise for our own products in India. So those goes with the purchase of the ring. So getting manufactured outside earlier we are not doing it. So we are getting it done at three locations in India. And now Apnar will be in additional location.
Pranav Chawla
So these are part of our own subsidiary. So we whatever we purchase from a manufacturing facility that is a part of. This one purchase of stock in trade.
Deval Shah
It includes that also. But it also includes some outsiders. What
Pranav Chawla
Is the percentage conservation
Poojan Shah
Of outsiders. Contribution? So
Deval Shah
This is what you are seeing in outsiders because internal get knocked down the figures.
Unidentified Participant
So this is more of an outsourced.
Deval Shah
This
Unidentified Participant
Is actually an outsourced production. Yes.
Deval Shah
Which
Unidentified Participant
Technically is reported as purchase of stock.
Deval Shah
Yes.
Unidentified Participant
Okay. Okay. Understood, sir. Yeah.
Operator
Thank you. Ladies and gentlemen. Anyone who wishes to ask a question may press star and 1. The next question is from the line of Poojanshah from Molecule Ventures. Please go ahead.
Poojan Shah
Thanks for the opportunity, sir. My first question pertains to. So we are guiding our 50% growth and we will be going to achieve that in FY26. So considering the FY27, are we expecting shy 2000 crore mark revenue? Because considering the consolidation of Apnar, which can contribute to 120. 150 crore. And on our base business we can grow up to 30, 35%. Can we expect a thousand crore revenue mark with an ebitda margin of 30%? Because in next year also we will get the backward integration facility of API that will meaningfully contribute to our expanding our EBITDA margins.
So are we assuming in a correct phase or am I missing something?
Swapnil Shah
Poojan, you know our company more than what we know our company. So no. Thank you for your feedback and your you know acknowledgement on our efforts that we’ve been able to grow at such a pace and will continue to grow. I think right now I would not say anything about thousand crore or 30% or 32% kind of a number. I think what I feel is there’s a strong pipeline of products that are scheduled for launch. As I said 28 and that are scheduled for launch with another 22 out of 22. Good part of chunk will be get will be launched on our own products.
That’s on the regulated market under CDM or cmo. Also we have significant launch plant that you have already seen on emerging market. Also you saw 56 product registration came in last quarter which will get commercialized in this quarter and we’ll get a full year next year. Our branded generics India is also witnessing pretty high growth numbers. So all in all, if you look at all metrics, it all points out to a robust growth. Giving a specific number right now I think it’s a little premature. You know, let us get APNAR up and running.
You know, get that goals achieved within this quarter as we speak. And I think probably when we disclose our full year result, I think with specific numbers we should be able to guide. But all your pointers are also what we think. Right? And as I said, you know our company better than us. So no, we are going towards. We are a hard working bunch. We continue to work hard for the higher growth numbers.
Unidentified Participant
So Bhujan, just to add whatever internal thought processes that we are evolving, Apnar’s plan, there would be some shifting of production as well of relatively low cost products from US to India. So it is not one plus one equal to two. You get my point. So yes, 25% plus growth target. What we indicated on the second quarter call is the minimum on which we are working. It can be better. Give us one more quarter and we’ll be able to give you a little more clearer answer to that.
Poojan Shah
Sure sir. Thanks for the detailed explanation. My second question pertains to the emerging market. So are we expecting the similar kind of EBITDA margins as we have been transitioning the business from being a negative beta margin to flat and then we have performed way better. So just wanted to understand the dynamics right now. Should we consider the similar kind of margins would be expected in FY27?
Swapnil Shah
Yes. So we feel our margin profile on emerging market what we’ve seen in Q3 will further improve in Q4 and for the full year what we see today as a consolidated which should get better further. So yeah. Observation. Your observation is correct. I think we are going towards better EBITDA profile in emerging market as we speak.
Poojan Shah
All right, last bookkeeping question. Sir. Swapni. Sir, I have been looking at our con call history as well and was trying to understand our revenue recognition model. So could you just help me a brief stating about how we recognize our model in terms of sales. Because what I am being understood, I’m being understood is that whenever we try to launch a product we get a one time fee and then ultimately licensing fee and then eventually it will be a partnership model for the our own product model.
And in terms of in terms of government, we get an CDMO basis. Obviously we don’t have a direct reach to the government, but ultimately with partnership we have a direct reach to the government for the control substances as well. So we directly recognize our fee and profit sharing from our partners who sells the product. Is that a correct understanding or am I missing something?
Swapnil Shah
So Poojan, it’s correct and everything is contractual, right? So both on our own products as well as cdmo, cmo, these are all the revenues that you just mentioned. Each stream of the revenue, they are part of our contract at the contractual obligation with our partner. So your understanding is largely correct on that side.
Poojan Shah
Okay, got it sir. And is there anything historically happened that we have any disagreement or Any failure of contract which has impacted our. Impacted our inventory or any write off has been happened in the past or it is. It never happens is the case.
Swapnil Shah
So Poojan, we only manufacture basis on a confirmed purchase order that we get from our partners. And our manufacturing capacities are presold. So our finished goods inventory that we carry is very less. Like in terms of maybe max 15 days in terms of FG inventory that we carry. So if you look at it so far we’ve never had an issue of any inventory write off. Because anything that we make is already pre sold based on the purchase order that we have got we get from our partners. So that has not happened with us.
We will not make it if there is no confirmed order. Right. So there is no question of inventory write off whatsoever.
Poojan Shah
Okay. Got it. Sir, thank you for explaining each. Each questions. Very well. Best of luck for the upcoming quarter. Thank you.
Operator
Thank you. Next question is from the line of Viraj Shah from Shah Investments. Please go ahead.
Viraj Shah
Hi sir. Congratulations. So recently just wanted to understand the other expense and depreciation line items for Q3 for this quarter. There’s a good enough decline in the other expense compared to the last quarter. That is Q2, FY6. Also depreciation has come down significantly from the last quarter At a time when we are expanding manufacturing capacity at the US plant. So just wanted to understand these two light items from your side.
Deval Shah
Yes. So first coming to the other expenses. I think other expenses are function of the consolidation thing. And we have rationalized certain expenditure in the coming in the current quarter. So there is a slight fall in other expenses to 22 crores. You see if you see 22.9 crores. Right. So these are. There is no specific reason but we are controlling the expenses in a better way. We have put up solar plant in our facility which has saved us the energy. We have gone for certain automations which have saved us some labor cost.
So this is addition of so many measures what we have taken.
Viraj Shah
Okay, understood. Recently there was some pledge of shares on the promoter side. I just wanted to understand the reason for the same. Also any broad timeline when we expected this pledge to go.
Swapnil Shah
So. So Viraj, those. Those. There’s a small pledge that happened that was largely to you know consolidate some of the. Some of the borrowings. And it’s not likely to go up any. Any. Any pledging whatsoever.
Viraj Shah
Okay. Understood, sir. But also given that you have the proceeds from IPO still there. The company is now getting steady cash flow. Operating cash flow in the. In that background. I just Wanted to understand the rational behind the insurance of the warrant which was there for the promoter group recently.
Unidentified Participant
Yeah, so now if you see out of my IP proceeds, we have specific about 100 crores earmarked for our Atlanta facility, which we can’t touch. On the GCP side, we have now a very little amount as you see as of 31st December. Even after that we had just about 25 crores. And then we had done this Apnar acquisition in the current quarter, which further reduces going by the growth trajectory. We worked out a situation where maybe about 75 to 100 crores could be an additional infusion required over next 12 months for partly for new product acquisitions in terms of undas or primarily for working capital margin.
So with this we thought that it is too small an amount to really go out and reach the market and then. So therefore we thought of this structure as a warrant structure where 25% can be contributed now and as and when it is required, promoters can contribute the balance amount over next maybe six to 12 months. That was the basic logic.
Viraj Shah
Okay, understood, sir. All the best for the future. Thank you.
Operator
Thank you. The next question is from the line of Forum Parikh from Bank of Baroda Capital Market. Please go ahead.
Forum Parikh
Thank you for the opportunity. Congratulations on the good set of numbers. My first question is could you please tell us about the acquired andas? Like we have good 18, 20 acquired NDAs. So how many NDAs have we launched? If at all and when, by when do we intend to start commercializing and account on a quarterly basis on an average.
Swapnil Shah
Yes. Hi Puram. So we’ve launched about 4 ands from the acquisition portfolio as you speak. And as I said, we have another 28 products that are approved that are yet to be launched, which are also part of our acquisition portfolio which will be launched in next six to eight quarters as we’ve stated before. So the launch will continue. Also some of those products we are also launching in government business, not just the other retail or anything. So a lot of the government side of the business out of that acquisition will also happen.
And it is already happening out of four, I think three we already launched in the government as we speak. So that will continue to grow on that side.
Forum Parikh
Okay, and could you tell us on the margins front? Like I know this quarter margins have fallen from like 44% to 40, but with so many product launches, do you see this visibility of surpassing the peak ebitda margin of 44% with so many product launches?
Deval Shah
I think last quarter also we said that this 44% was a one off I think due to some product mix and other mix of income. But sustainable margin. What we see gross margin or EBITDA margin for the US business is around 40%. Going forward it may improve by a percentage or so. But long term what we see is around 40%.
Forum Parikh
Okay. And same likewise in the emerging market markets also like this quarter we have done good, but we also have good 56 products, you know, to be launched. So with this 13%, what could be the peak margin, you know, we can anticipate on the emerging market front?
Swapnil Shah
Yeah, so what we’ve said is we expect EBITDA margin on emerging market to be upwards to to close to 20% at the peak. Not necessary. That will happen next quarter. Next quarter is definitely being better than this quarter in terms of margin profile and full year. If you look at it from a previous year, it is going to be significantly, very significantly better. FY27. So next year, FY27 we feel that margin when we get to about 18, 20 to 22% kind of a number should stabilize and then maybe another three, four quarters it should improve further.
Couple of basis points. So we feel that trajectory we already have started which will continue to get better as next quarters come in.
Forum Parikh
Sure, that’s helpful. Thirdly, could you please tell us on the CapEx front like our Atlanta oral solid facility, I mean we have 1 billion tablets and we intend to expand to 2 billion tablets. So like by when can we expect, you know, this expansion to be completed? Any light on that front.
Deval Shah
So that capacity expansion I think is likely to be done by next year. Now since we already have Apnar in our fold. So we already have an extended capacity directly now. So next year we’ll see and expand the capacity there.
Swapnil Shah
What we are doing structurally is we are as Sanjay just mentioned, there are a lot of there are some low margin products that doesn’t require or that’s optional for us Manufacturing might be moving to India at Apnar. So that opens up my capacity for the US so that can be utilized for a higher margin business. Overall. If you look at scheme of things on both the sides, we get facility utilized. Your facility utilization opens up for higher margin and those products are being made at India side. So would you put all these things together?
I think we are already about a 2 billion manufacturing manufacturing unit, your capacity which further will grow next year as we put in more capacities. But we are watching it carefully. Quarter over quarter, month over month in terms of what is the utilization levels, how we are, how swiftly we are able to transition our products from US to India. How the margin profile happens for India. So we are keeping very close watch on those metrics as we speak.
Forum Parikh
Okay, that’s also very helpful and my last question is it’s a little broad sense. So we are seeing 100% patch growth since two years in a row and with so many levers, you know with Apnar and new product launches both on the developed and acquired side and expanded capacity. So do we expect. I know it’s little premature but can we have visibility of recording 100% growth at the bottom line in FY27 as well?
Unidentified Participant
Forum, we wish that your words will come true but as we said very cautiously, please give us some more time to work out how exactly the next year is going to pan out. You see from last year to this year 100% growth was also due to a relatively lower base effect. Now once I’m at 650 crores and maybe 100 plus crore kind of a pack this year, 105, 110 punishment 15, whatever it comes to expect that 100% to, you know it’s a little asking too much but I would say a very decent top line growth and slightly better bottom line growth is what we are targeting.
You get my point?
Forum Parikh
Yeah, sure, no problem. That’s helpful and all the best for the next quarter.
Unidentified Participant
Thank you.
Operator
Thank you. The next question is from the line of Maitrey Seth from Choice Institutional equities. Please go ahead.
Unidentified Participant
Thank you for the follow up opportunity. Just few questions. One is on the Capex plant. If you can quantify how much Capex spend we are expecting for the next 2 to 3 years.
Deval Shah
CAPEX 2 to 3 years I think should be around 50 crores to 100 crores in between depending on the requirement. Because earlier we are planning a capex in U. S but since we have got up now so that maybe. So this
Unidentified Participant
Is the sort of the
Deval Shah
Fixed capital asset annual
Unidentified Participant
Annual kind of a run rate. Yeah.
Unidentified Participant
Okay. And second is on the receivable and payable days. If you can help us understand how much receivable and payable days are we seeing currently.
Deval Shah
Net working capital. My cycle is around 90 days. 94 days.
Unidentified Participant
Thank you.
Operator
Thank you ladies and gentlemen. Due to time constraint that was the last question for today. I now hand the conference over to the management for closing comments. Thank you. And over to the management.
Swapnil Shah
Thank you. I would like to once again thank everyone for joining our earnings call. We will keep updating the investor community on regular basis of the developments at Cenorus. I hope we have been able to address all your queries. For any further information, kindly get in touch with us directly or through our investor relations partner. Thank you very much. Thank
Unidentified Participant
You and have a good evening. Thank you.
Operator
Thank you all on behalf of Ambit Capital Private Limited. That concludes this conference. Thank you all for joining us today. And you may now disconnect your lines.