Supriya Lifescience Ltd (NSE: SUPRIYA) Q1 2026 Earnings Call dated Aug. 14, 2025
Corporate Participants:
Unidentified Speaker
Krishna Raghunathan — Chief Financial Officer
Saloni Wagh — Managing Director
Satish Wagh — Executive Chairman and Whole-time Director
Analysts:
Unidentified Participant
Aditya Pal — Analyst
Karan — Analyst
Rupesh Tatiya — Analyst
Amit Agicha — Analyst
Nirali Shah — Analyst
Abhishek — Analyst
Presentation:
operator
Sat. Sat.
operator
Ladies and gentlemen, Good day and welcome to Supriya Life Sciences Limited Q1FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this 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 Ms. Neha Salyan. Thank you. And over to you ma’. Am.
Unidentified Speaker
Thank you, Shubham. Good morning everyone. On behalf of Supriya Life Science Limited I extend a warm welcome to all participants for the Q1FY26 financial results discussion today. On the call we have Dr. Satish Vag, Executive Chairman and Whole Time Director. Dr. Saloni Wag, Managing Director and Mr. Krishna Raghunathan, Chief Financial Officer. Before we begin the call, I would like to give a short disclaimer. This call may contain some of the forward looking statements which are completely based upon our belief, opinion and expectations. As of today these statements are not a guarantee of our future performance and involve unforeseen risks and uncertainties.
With this I would like to hand over the poll to Mr. Krishna Raghunathan for his opening remarks. Over to you sir.
Krishna Raghunathan — Chief Financial Officer
Thank you Sneha. Good morning and a warm welcome to all the participants. Thank you for joining us today to discuss the Q1FY26 results of Supriya Life Science Limited. On the call with me today are Dr. Satish Wag, Chairman and Dr. Saloni Wag, Managing Director and our investor relations team from Ernst and End. I hope you have had the opportunity to review our financial results and investor presentation which are available on the stock exchanges and on our company website. With that let me take you through our quarterly performance. Revenue for the quarter stood at rupees 145 crores reflecting a 10% year on year decline.
The drop was primarily due to a delay in the production facility campaign. Following repair and maintenance work at our lot office several scheduled intermediates produced in blocks A, B and C. Currently these blocks cannot handle the load required to support module E. The repairs were therefore critical to improving the efficiency of these older blocks as without such upgrades, fully utilizing modulity would be challenging. During the quarter the EBITDA stood at rupees 52 crores with 36% year. Despite the dip in our revenues.
Krishna Raghunathan — Chief Financial Officer
Being.
Krishna Raghunathan — Chief Financial Officer
The mainstay of our business contributing 85% of Q1FY26 revenue. Within this the European market share increased from 36% in Q1FY25 to 41% in Q1FY26. Backward integration continued to improve rising to 81% from 69% in Q1FY25. This progress has strengthened our control over key inputs, reduced dependence on external sources and delivered further cost savings. As stated in our previous call, Ambergrad site has started validation campaigns and will commence production of liquid anesthetics and rural solids, a significant milestone for our CDMO strategy. We expect commercial contributions coming in from Q4 of this year. We remain confident of delivering 20% annual revenue growth with EBITDA margins in the range of 33 to 35%.
We expect the second of the half of the year to outperform the first as the delays in production and sales from H1 are recovered in H2. Our goal of reaching rupees 1000 crores in revenue by FY27 is supported by a strong pipeline, three to four product launches planned for FY26 and rising demand across key therapeutic areas such as anesthetics, anti diabetics, anti anxiety, vitamins and ADHD treatments. With rising customer interest and a focused strategy to grow registrations and strengthen market presence, we are well placed to capitalize on long term opportunities and remain optimistic about the years ahead.
We are on course to achieve both our short term as well as long term goals regarding the US Tariff situation. While this market accounts for a small share of our revenue, we continue to track developments and assess any potential implications. Our primary focus remains on expanding in other high potential regulated markets. Our competitive advantages lie in strong backward integration, well established regulatory credentials across major markets and an extensive range of distinctive products. We remain confident in our strategy as we work towards creating value for our stakeholders. Let me all take you through the operational highlights of the quarter and full year following which we will open the floor for questions and answers.
The company reported revenue from operations of 145 crores in Q1FY26 as against 161 crores in Q1FY25, a degrowth of 10% year on year. EBITDA in Q1FY26 stood at Rupees 52 crores as against Rupees 63 crores in Q1FY25 a degrowth of 17% year on year and EBITDA margin stood at 36% for Q1FY26 PAT stood at Rupees 35 crores in Q1FY26 as against Rupees 45 crores in Q1FY25 PAT margins stood at 24%. Our capex for Q1FY26 stood at Rupee 14 crores. Going forward, we expect capex to close around Rupees 65 crores for remaining FY26 primarily directed towards maintenance, capex and certain small projects like river block and other requirements in formulations planned on borrowings.
We would like to report that for the last six months we have not utilized any working capital limits except for letter of credits and bank guarantees. With that we can open the floor for question and answer.
Questions and Answers:
operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone phone. 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 comes from the line of Rachana Ki from Simpl Please World.
Unidentified Participant
Hello. Am I audible?
operator
Yes, ma’.
operator
Am.
Unidentified Participant
Yes.
Unidentified Participant
Okay. Just wanted to understand. The revenue contribution from backward integrated products has increased to 81% which is, you know, the highest till date. And this appears to be reflected in stronger gross margins as well. Going forward, if this mix normalizes back to our historical range of 65 to 75%, should we expect gross margins to normalize accordingly? Or would this be offset by better pricing and product mix as we, you know, expand further into our key regulated markets? This is my first question.
Saloni Wagh
So our focus as a company has always been on backward integration. So you will see that in the coming few years also, even the new product launches, what we are doing will be with fully backward integrated model. So the backward integration percentage would sort of be maintained between the 75 to 80%. As regards the gross margins, typically we don’t talk on gross margins, but at the EBITDA level it is mainly a combination of of course, the backward integration efforts that we are undertaking as well as the average selling prices, what we are getting for these products in regulated markets.
So it is a mix of both. So moving forward, I think we would be in the same range of 75 to 80% on the backward integration and on the EBITDA margin front, we have always guided 33 to 35% EBITDA margin which we are confident we’ll be able to maintain.
Unidentified Participant
Okay, My second question was we had, you know, filed several products with CEP approvals. One of them was Vistropol formulate and if you could provide an update on how these products have scaled in regulated markets. And these products, you know, were, you know, were expected to gain traction in Europe markets as well. So if you could guide on that, how have these products performed?
Saloni Wagh
Yes, we are getting good traction for these products in regulated markets. In fact, in terms of the volume contribution and revenue contribution from this particular product, we have seen a good growth in the last two to three years. As far as the Europe market is concerned, Customers have just started taking trial quantities for their validation. And once their validation is completed, which takes typically between nine to 12 months, we will start seeing good commercial revenue also coming in for this product from Europe. So next year you can expect good revenue contribution from Europe for Bisoprolol Fumarate.
Unidentified Participant
My last question. While we have maintained our guidance of thousand crores target by FY27 and also a strong contribution from CDMO or CMO segments along with a healthy EBITDA margins. Hello? Hello.
Saloni Wagh
Yes, I’m able to hear you.
Unidentified Participant
Yes, yes, I’ll repeat my question again. While we have maintained the guidance of achieving thousand crore revenue by FY27 and a good contribution from CDMO and CMO segment as well, along with healthy EBITDA margins, what would be the key drivers of us which we will be focusing beyond FY27? Specifically, what would be our key growth drivers beyond FY27 and would we be able to sustain more momentum?
Saloni Wagh
Yes, absolutely. I think beyond FY27 the two most important growth drivers for us is going to be introduction of new products in the portfolio. We are actively introducing about three to four new products every year. We are also introducing newer therapies in our product portfolio to make it more robust. So once these products start gaining traction in semi regulated and regulated markets, the revenue from these products will really amplify the sales. So I think the first key growth driver is going to be addition of new products. The second for us is going to be in the CMO CDMO space both in terms of advanced intermediate API and also the finished formulation site which we are setting up in Ambernath.
So the Ambernath site would be, it is already commissioned and we start seeing commercial revenues from this site maybe quarter four of this year. So I think that also will sort of add to the revenue moving forward. So just to summarize, new product addition and CMO CDMO opportunities both on the API as well as the finished formulation side.
Unidentified Participant
Okay, thank you so much.
Saloni Wagh
Thank you.
operator
Thank you. Ladies and gentlemen. In order to ensure that the management is able to address questions from all participants in the conference, please limit your questions two per participant. Should you have a follow up question, we request you to rejoin the queue. The next question comes from the line of Aditya Pal from MSA Capital Partners. Please go ahead.
Aditya Pal
Yeah, hi, thank you so much for the opportunity. Just wanted to understand a bit more on the decline in revenue. I was hearing CFO’s discussion but didn’t really catch a good hold of it. If you can help me understand a bit better, that would really be super helpful.
Saloni Wagh
So the revenue drop was primarily due to the delay in the production facility campaign which happened because of the repair and maintenance work that we had taken up at the Lotte site. As you know, we have recently started commercial production in our module E which is one of our biggest production blocks with a capacity of 350kl. Now to support the module E there, we are actually envisaging a good growth happening in our existing set of products as well as some of the new products we want to scale up from the module E. So in order to support that module E we had to take up a lot of maintenance work in our older blocks, which is the module A, B and C.
And because we initiated this maintenance activity in the month of April, we actually lost a good amount of production days which has sort of translated into the lower revenue. So this is the main reason for the dip in the sales of quarter one.
Aditya Pal
Understood, Understood.
Aditya Pal
And.
Aditya Pal
The management was also discussing a couple of quarters con calls back that the. Because our model ABC are quite old when we compared to our newer blocks and we were planning to either reinvest or refurbish the equipment over there. So was this, the, this the plan and now the refurbishment and the, the repair and maintenance work that we had envisaged earlier. This is done in ABC,
Saloni Wagh
correct?
Saloni Wagh
So not fully, we have not fully 100% debottle necked the older blocks but to at least sustain the output from module E for the next one, one and a half year, whatever little maintenance work we had to do that we have undertaken, you can expect maybe one year down the line we’ll still have to do further debottlenecking to fully optimize those blocks. The because those blocks are still not fully automated. So once we introduce automation in those blocks, we can really optimize the capacity utilization there. But yet some part of it to support module we have undertaken in the month of April.
Aditya Pal
Understood. And so last quarter I believe that we had launched our anesthetic drug Serofluorin. Serofluorin Isofl. The entire Serofluorin family, if you can help me understand. Because obviously we have launched these molecules first in our semi and semi regulated markets. If you can help me understand how they are, how they are doing, how they are coming up and when do we plan on our CEP and DMF filings?
Saloni Wagh
So yes, we have launched one product from an aesthetic category in the last quarter and we are getting very good traction for the product. We have already started some commercial supplies in domestic market and most of the regulated customers have taken samples and now they are qualifying the product. We are expecting maybe by quarter three we should be in a position to file the USDMF and the cep. But overall we are getting very good traction for the product. And for you to see the full commercial revenue generation from this product I think it will take at least 3, 3 to 4 quarters because it will take us about 9 to 12 months to get the approval on the CEP and the USDMF as well.
Aditya Pal
Understood. Understood. Just one last question on the regulatory aspect that when we. When. So there are a lot of products.
Aditya Pal
That we have not yet filed.
Aditya Pal
Successful products that we have not filed in dmf. Sir, in with fda, how do you. Because revenues from the US geography is lower. Do you. Do you think that maybe in the next couple of years maybe say Starting at mid FY27 we will aggressively start expanding? Looking at. Looking at the US geography with a keen eye. I am assuming that the tires don’t come on API and pharma products.
Saloni Wagh
So Europe for us. Europe and Latin American markets like Brazil, Mexico, they have always been the larger markets for us mainly because of the product portfolio that we have. Of course we have seen some improvement in our North American sales. And we are expecting that with the new product launches that would further improve. But having said that even with that, you know in the next at least 3, 4 years Europe and Latin American market would still contribute to the larger chunk of revenues.
Aditya Pal
Just talking about delta perspective. That is it.
Saloni Wagh
So in terms of regulatory filings, of course any new product that we launch we always have a global view in mind. And we definitely want to get the regulatory approvals for that product across all markets. So for all the new products that we would be launching we would definitely be filing the USDMF as well. So the number of US DMF filings in the next three to four years will definitely be much higher than what we are doing today.
Aditya Pal
Understood. Under this. One last question before I come back. Sorry to interrupt.
operator
Mr. Aditya, may we request that you return to the question? Thank you. The next question comes from the line of Krish Akansara from Molecule Ventures. Please go ahead.
Unidentified Participant
Am I audible too?
Saloni Wagh
Yes, yes you are audible.
Unidentified Participant
My question is on the CDMO segment. I would like the management to provide us with the latest update regarding the CBMO contract which are key to the company. One is the DSM contract for Vitamin B. Second is the whey protein contract and the third is the contest area. So on the whey protein side we were about to sign a contract with a distributor. So is there any update on the scheme and can we expect this particular product to start contributing to our volumes in H2 of FY26? This is my question related to. Wait and then I come to the other two parts.
Saloni Wagh
Yes. So the contract that we were looking to sign, it is at a final stage. We are expecting to close this contract and sign it probably end of quarter two, a little before that. Actually already the validation batches and all have been supplied to this particular customer. And we are expecting some small revenue generation happening from this particular contract. Maybe in quarter four of this year, in the next three, four years. This product has a good potential to give at least a 40, 50 crore revenue. And maybe beyond that, let’s say if we take a five year sort of five, six years sort of guidance this can really scale up to 100 crores revenue as well.
But everything depends on how the contract moves because this is a very new product in the Indian market. It’s the first time somebody is launching optimized whey protein. So we also have to see how the market is sort of responding to this particular product. But if all goes well, these are the kind of projections we can achieve in the next four to five years.
Unidentified Participant
Right. So in the last point you had mentioned that you know we can do a volume of hundred nitric tons in this year. So do we expect to meet the guidance. And.
Saloni Wagh
So 100 metric ton this year would not be possible considering the contract has taken a bit of time. But yes, about 50 tons we will be able to achieve in this year if all goes well. If the trials goes well. About 40, 50 metric ton is something that we expect to achieve this year. But of course we’ll keep guiding and we will keep correcting the guidance as and when the contract is signed and once we start getting the purchase order from the customer.
Unidentified Participant
And did we block any revenue from the DSM contract in this quarter or that will be for the H2?
Saloni Wagh
Yes, we have started generating revenue from the DSM contract in this quarter also. We in the first quarter also we have supplied to them some small batches for Their customer trials mainly in the food and feed space. But the revenue generation is very, very minuscule at this point. However, this year we are expecting in quarter two, quarter three and quarter four good volumes coming in from the DSM contract. And for this year I think about 30 odd crore of revenue we are envisaging coming in from the DSM contract. So that is well on track. And already we have received our CEP for this particular product for dsm.
So Europe market has also started gaining traction. We are now waiting for the Japanese PMDA approval. When that also comes in and the pharma customers approve the product, then the volumes will really start scaling up.
Unidentified Participant
Right, Right. Okay. So that that contract is on track. Anything on the.
operator
Sorry to interrupt. Ms. Krisha Ma’.
operator
Am.
Unidentified Participant
This is my last question. Sir. Hello.
Saloni Wagh
Yes.
Unidentified Participant
So is there any update on the Contrast Media site? So you mentioned that we are already in discussion with a few global companies.
Saloni Wagh
So for the Contrast Media product, we are actually launching this in quarter two. We have not yet launched the product. Once the product is launched, we are in initial discussions with a lot of companies for some tires. But I think once the product is commercially launched and all the documentation part is completed, we would be in a better position to guide on that.
Unidentified Participant
Launch in next month.
Saloni Wagh
Yes,
Saloni Wagh
thank you. Thank you.
Saloni Wagh
Thank you.
operator
Thank you. The next question comes from the line of Ashish Upgan Laukar from Invest qpms. Please go ahead.
Unidentified Participant
Yes, thank you so much for the opportunity. If I could understand clearly from what the commentary on the call has been regarding the Q1 numbers dipping a bit is that there was certain disruption due to kind of supply side issues at our end and no demand side issues at the customer end. So just wanted to check on that. And secondly on the. I mean will this volume which has not been done in Q1, is it going to be made up in Q2? And that’s why Q2 can be a bit better. So I just wanted to confirm that there is no demand side issue as such because your commentary also said that from H2 numbers will be better.
So does it mean that there is something in the macros which is of concern to us?
Saloni Wagh
Correct?
Saloni Wagh
Absolutely. We are very confident that whatever we have guided the revenue growth of 20% plus and the EBITDA margin guidance, whatever we have given, we are very confident that we will be able to achieve them in the remaining quarters. H2 would definitely for us this year be much stronger in quarter two you will see some part of that sales getting recovered. There is absolutely no issue on the demand side it has only got to do with the maintenance activities and the loss of production days which are sort of translated into the lower revenue. But if I look at the other aspect of the business, Europe, sales have gone up from 34% to 41%.
Even in our product portfolio, anesthetic, antihistamine, all the sales are on an upward trend. Export percentage has gone up to 85%. Our capacity utilization has gone up to 76%. So there are all the positives which are there in the business only because of this setback. Because of the maintenance activities, we were not able to cater to the demand of the customer customer. But in the coming few quarters you will see that we will be compensating for that. In quarter two, we will not be able to fully compensate. So I think the greater revenue will come in H2 of this year.
Unidentified Participant
Okay, second question would be that, see right now I think we are all conspiring as far as demand. New products, new filings and that will be, I mean, adding to our revenues over years. So I think all the drivers that need to be there for our business to consistently grow at a very good pace that seem to be there. But historically what we have seen that the business of CDMO’s APIs basically is a bit cyclical in nature. So is our story going to be intact in case there is some, some kind of lull in the demand side? Because historically no one has been able to time it.
Inventories take shape at the customer’s end and then the cycle goes for a toss, margins goes for a toss. So anything in the environment as of now to read anything like that, maybe after one year or maybe immediately. And secondly, our growth guidance of 20% plus with maybe market share gains and new products, is it devoid of that? I mean, are we in safe zone if anything like that happen? And are you reading anything which is of concern? There’s nothing. Right.
Saloni Wagh
So our guidance of 20% growth is factoring in all the, you know, different risks to the business. We have a very robust portfolio between APIs. Even on the CMO CDMO front, we are not only working in APIs advanced intermediate, but also finish formulation. And most of our projects and product selection in this space is very, very niche. So these are, you know, molecules wherein there is only one manufacturer or concentrated manufacturing where we will be able to create a lot of value for the customer by the way of backward integration and regulatory approval. So as such, I don’t see any, you know, issues for the kind of growth what we are guiding.
And that 20% growth is sort of factoring in, you know, little bit of sales dip in one of the portfolios of the company that is already factored in. But having taken into consideration all of that, we are still confident that we will be able to maintain our growth pace of 20%.
Unidentified Participant
Plus, just to add, is there a possibility of me going beyond 20%? Can we be a bit higher because of size as such versus the opportunity that is still seems to be small. So why is it a very conservative number of 20% growth? Can it be 30%? I mean, some guidance on that. I mean, how is this the base?
Saloni Wagh
Because we operate actually in a very regulated space. As you can see, 85% of our business is exports. And in that 85% also closer to 50% comes in from regulated markets. Regulated market business takes time to develop. Regulatory approvals take time to come in. So of course there is a chance that we can grow beyond 20%. But keeping in mind the regulatory implications in all the business verticals that we operate in, 20% is something that we would like to write.
Unidentified Participant
Okay, thank you.
operator
Thank you. The next question comes from the line of Karan from Invexa Capital. Please go ahead.
Karan
Hello. Am I audible, ma’? Am?
Saloni Wagh
Yeah, yeah.
Karan
Hi ma’. Am. Just to get a sense on the pipeline beyond FY28 for our CDMO CMO as well as new molecules. So can you just provide some outlook? So what sort of therapy area are we targeting and in terms of the market potential for those drugs, will it be very similar to what we do currently or it will be a larger time that we are targeting for those molecules.
Saloni Wagh
So as of now we can guide till FY27 in FY till FY27, the molecules or the therapies, what we are targeting is anesthesia, adhd, anti diabetic cardiovascular. These are some of the therapies where we are trying to launch product in these therapies for us. Cmo, cdmo, like I said, not only API advanced intermediate, but it will also come from finished formulations. So in finished formulations we are also targeting oral solid dosage injectables and of course our liquid anesthetic line. So till FY27, these are the four, five areas that we are targeting for the new molecules and the new launches.
Karan
Okay. I mean earlier on the, in the earlier calls also we have on the, for the cmo, on the new molecule side, we have guided for that we are working on a cardiovascular drug. So where are we in terms of development and the commercial side of that molecule?
Satish Wagh
Sir, I will Tell you my name, Dr. Satish Wagi. You see the the products which we have targeted and we are going. You must understand there is no competitor for us in India. Our chemistry is not to fight in India. Our chemistry is to crack the Chinese molecules and take the business of Chinese. So the currently when we are sitting here, the two products which we are already launched, they are very big volumes like anesthetic is almost a product of $6 billion. Now if 6 billion I can take few hundreds of crores. I will definitely go for that opportunity to encash because more of the people like you know, multinationals and big companies would like to leave China and go to India to buy this product.
So when we are already having a vision that we will get business a good, good amount of Ebitas will not waste our time on other things. You know, we’ll concentrate to utilize the maximum capacity which we have installed for which we have already spent money on it. I’m sure you understand that.
Karan
Yeah, I get that. But can we assume that is whatever guidance we have given 27 this is one of the product that we have considered for that guidance.
Saloni Wagh
So we have considered only part of that because for any new product, like I explained before, also for any new product to sort of scale up in regulated market, it takes about two to three years from its launch. So some part of it, yes, we have considered but not to the full extent of the market size of this product.
Saloni Wagh
Product.
Karan
Okay. Okay, thank you so much.
Saloni Wagh
Yeah,
operator
thank you. The next question comes from the line of Rupesh Tadia from Sri Rama Managers pms. Please go ahead.
Rupesh Tatiya
Yeah, thank you. Thank you for the opportunity. Before I ask my questions, one clarification on slide number 14. It says in Q1 capacity utilization is 76%. But our capacity went up from roughly 600kl to 950k. So this 76% is on the older denominator. Right? Is that a correct understanding?
Saloni Wagh
Yes.
Rupesh Tatiya
So I mean now with the new capacity commission, the capacity utilization has significantly dropped. Now must be around 50 like that. Right.
Saloni Wagh
So in terms of capacity utilization, what has happened is module E which is one of our largest block, that utilization has gone up because most of our large products are now scaled up there. So yes, although it is on an older denominator, minorly it would have dropped not to the level of 50% or something.
Rupesh Tatiya
Okay, okay. And for the both CVS product and ADSD product, can you give some timelines about launch in India? For example, when will it be filed and end product size? Both the products CBS products and ADHD product.
Saloni Wagh
So for the ADHD product we are actually expecting to launch by quarter four of this year. So we are still two quarters away from the launch of that product. The total market size of this product at the API level would be about US$90 million. For the cardiovascular drug, the Advanced Intermediate, what we are launching, we have already launched this in quarter one. And for that Advanced Intermediate, the global volume as of now is about US$40 million.
Rupesh Tatiya
And for both these products, there is no manufacturer in India.
Saloni Wagh
No. So for both these products, like our chairman said before, we don’t have an Indian manufacturer. Especially for the Cardiovascular Advanced Intermed, we don’t have any Indian manufacturer. It would be a replacement product from China and globally.
Rupesh Tatiya
How many manufacturers of both these products?
Saloni Wagh
Globally, maybe one or two manufacturers.
Rupesh Tatiya
Okay. Okay. That’s, that’s, that’s clear. Yeah. And contrast media product, I think last call, I think we were expecting, hoping to win 20, 25% market share in the contrast media product. So I mean, and I know we’re launching it in Q2. So how is the customer seeding, sampling? What gives us this confidence that we can bring this market share? Is it the cost advantage? Is it the technology advantage? Is it the quality advantage? Some color around that would be helpful.
Saloni Wagh
So it is definitely the cost and the technology advantage that we have. As you know Supriya, we believe in having a backward integrated business model. So we have fully backward integrated this product all the way till the key starting raw material level. Our technology is also far superior as compared to the technology available in the market. And along with that we have already set up a very large capacity for this product in our current blocks. We will also be going in for full regulatory approval. So a combination of all these three, four things, we are very confident that we will be able to gain good market share in terms of that 20% market share, what we are getting.
This will take time. It will take at least three to four years. Like I explained before also that regulatory approvals take time. So any product scaling up and getting that kind of market share from its launch takes about two to three years. But we are very confident with the technology and the backward integrated model that we have. We are very confident that we’ll start getting good traction from the customers.
Rupesh Tatiya
Is that understanding correct?
Saloni Wagh
Pardon? I’m not able to hear you.
Karan
Sorry. This, this product is not an iodine chemistry, right? The contrast media product.
Saloni Wagh
So some part of it has iodine chemistry. But we have been able to develop better technology wherein we are, you know, sort of Surpassing a few stages.
Rupesh Tatiya
Okay, but. But the end and classification of the product is iodine based contrast media. That’s. That’s the correct understanding. It’s a better technology.
Saloni Wagh
Yeah.
Rupesh Tatiya
Okay, thank you. Thank you for answering my question.
operator
Thank you. The next question comes from the line of Amit Agicha from HG Hawa. Please go ahead.
Amit Agicha
Yeah, good morning sir. Am I audible?
operator
Yes sir.
Saloni Wagh
Yes, you’re audible.
Amit Agicha
Yeah.
Amit Agicha
Thank you for the opportunity. And sir, congratulations for good set of numbers. And so the question was connected to like any visibility level of market share gain or loss in key geographies.
Saloni Wagh
No, we have for new products you are asking. I did not understand. Can you repeat the question?
Amit Agicha
Yeah, the company is witnessing like market share again or loss any in your future.
Saloni Wagh
So for our existing set of products we are definitely seeing a good traction. We are gaining market share and we are gaining that leadership position across regulated geographies. For some of the new launches. Of course with the kind of backward integration technology and the regulatory approvals that we are set to have we will only gain the market share from competitors. So overall the portfolio that we have made be the existing set of products or the new launches we are seeing a growth trend.
Amit Agicha
And then the second question was like what would be the expected EBITDA margin? Will it be sustained throughout FY2627?
Saloni Wagh
So the expected EBITDA margin what we have guided is between 33 to 35% and we are very confident that we’ll be able to maintain this margin in the coming few years.
Amit Agicha
Thank you for. I appreciate answering madam. Thank you. And all the best for the future.
Saloni Wagh
Thank you so much.
operator
Thank you.
operator
The next question comes from the line of Nirari Shah from ashika Stock Services Ltd. Please go ahead.
Nirali Shah
Yeah, thank you for the opportunity. I have two very quick questions.
Nirali Shah
Just wanted to know.
Nirali Shah
The FY26 CAPEX guidance that was given was 75 to 80 crores. Could this change of customer orders for new molecules accelerate in this year?
Saloni Wagh
Nothing of the sort here. I. I don’t think there is nothing which is accelerating or anything.
Nirali Shah
Got it. And just one more. With the U S tariff measures still uncertain have you assessed impact scenarios on your existing and planned US DMS backed products? Is there anything that would be concerning for us?
Satish Wagh
No, nothing at this stage. See it is going to be very very complex. It is not going to be a straightforward stuff between India and us directly. China may increase the prices for us also tomorrow. All these things. It’s a complex geopolitical scenario. At this point we haven’t Done anything much on the assessment side. Let final numbers come out and then we can take a learned decision.
Nirali Shah
Okay, thank you.
operator
Thank you. The next question comes from the line of Abhishek from Padmaja Investments. Please go ahead.
Abhishek
Am I audible?
operator
Yes, sir.
Abhishek
Yeah, yeah. My first question is we were actually reporting in the first month after the close of the quarter, like two quarters back. Like what? Are there any reasons like why are we actually doing it in the later half of the quarter? The reporting part, that’s my question. And question two, the whey protein, like will you be selling it only in India or throughout the world? And like, is our main input directly raw milk from which you will be producing this whey protein and part of that is like, will you be selling it directly to the consumers or through a distribution model? Okay, my first question is like, we are reporting with almost like June 30, the quarter is closed.
And like we were doing it within the first one month after the close of the quarter, like in Q3 and Q2, if I remember it last year. Like, are there any reasons for that? Yeah, that’s my question now.
Satish Wagh
It is because of the management’s availability also, sir. See, the Sebi is allowing us time till 45 days from the end of the quarter. You will have to announce the results. So we have to look at management’s availability also. There are meetings, there are international travels. All these things happen. So with all these things we had to fix up the calendar and then announce the results and I think for which all the board meetings are supposed to happen for any listed entity and we are well within the rules in doing that.
Abhishek
Okay, yeah. My question to did you understand my question too?
Saloni Wagh
Question two, I think was, if I heard it correctly, it was regarding whey protein and you were asking us what is the source of whey protein and who is the customer? Is it directly the consumer or the distributor? Is it correct?
Abhishek
Yeah, yeah, that’s the question.
Saloni Wagh
So on the way protein front, basically what we have got is an exclusive license of a technology from a US based company wherein we will be taking the bulk whey protein from any distributor or any large brand and then we will be passing that whey protein through our machine. And the machine basically creates hydrophilic pockets in the chain of the protein and it sort of makes it more optimized so better absorption, lesser side effects. So that is what we are doing in this whey protein technology. So our raw material is going to be any kind of bulk whey protein.
The technology can also work on other forms of whey protein, like pea protein, collagen. It works on all these areas as well. But for now, the first area, what we are entering into is bulk whey protein. And our customers will not be the direct consumers. Our customers are basically the larger brands who will be taking this in bulk from us and then they will be formulating it and then they would be selling the product in the end market.
Abhishek
Okay. And is it only in India or throughout the world?
Saloni Wagh
So yes, our agreement is exclusively for India, but we have also started getting a lot of inquiries from neighboring countries like Indonesia, Malaysia, in fact, Australia, New Zealand also we are getting a lot of inquiries. So we have now also started working on those inquiries for export market. But our agreement is predominantly for the Indian market.
Abhishek
That’s all. Thanks a lot and all the best.
Saloni Wagh
Thank you.
operator
The next question comes from the line of Tushar Bohra from MK Ventures. Please vote.
Unidentified Participant
Yeah, thanks for the opportunity. A couple of clarifications. First, the US China tariff issue. So since US is not a major market for us at least as of now, and our dependency on China is also quite minimal from a supply chain perspective, is it fair to assume that is no major impact to Supriya’s business at least relative to peer in the near term?
Saloni Wagh
Yes, absolutely. We don’t see any major impact because of the tariffs for us in the short term.
Unidentified Participant
Great. So you mentioned your new R D lab and the the intention to, you know, come up with at least three to four molecules every year in line with Dr. Wag’s earlier commentary earlier in the call, Is it fair to assume that the incremental opportunities we are working are going to be commensurately larger opportunities in terms of scale, given as the business scale is also going up. So are we looking at really blockbuster opportunities where the margin profile will also continue to be in line with or better than the overall average today?
Saloni Wagh
Yes, absolutely. I think some of the newer molecules, what we are selecting, they are much larger in size globally. If you were to look at the anesthetic molecule, it’s about $300 million. The ADHD, like I mentioned, it is about $100 million. So the molecule sizes, what we are selecting now are much larger. And for us also to gain market share in those molecules because of backward integration and because of better technology is much higher. So definitely in the next four, five years you will be seeing good traction coming in from these molecules. And because we are fully backward integrated and we already will, you know, start getting the regulatory approval on the margin front also, they will be in line with the kind of margins we are doing today.
Unidentified Participant
So, ma’, am, is it fair to say that when you’re planning the, the pipeline, you are planning at least a few years ahead in time and you’re also parallelly working with the clients to ensure that the demand is largely in place by the time you are able to start supplying?
Saloni Wagh
Yes, absolutely. So whenever we look at any new product launches, we are working on both sides, regulatory approvals to get into regulated market for better pricing. At the same time, the backward integration, setting up the large capacities, so on both ends, when we work, it sort of translates into better margins.
Unidentified Participant
So therefore your, let’s say, the near term possibilities that you’ve highlighted, whether on contrast media or the cardio intermediate, you already have visibility as to the client discussions that have taken place or the contractual are already in place. So that’s what give you, gives you the comfort to give a projection for the near to medium term.
Saloni Wagh
Absolutely. For the anesthetic product that we have launched. For the cardiovascular intermediate, what we have launched, we definitely see a lot of contracts coming through in the next couple of years. We already have a firm visibility of the volume across different geographies, new customers, even our existing set of customers. So we already have that level of confidence that in the next three to four years we’ll be able to scale up these molecules really well.
Unidentified Participant
Ma’, am, there’s one concern that maybe, or maybe just one observation that if you can clarify, while we are guiding for 20% conservatively, in case these contracts come through, and some of these are large molecules, large opportunities, do we have the bandwidth, you know, the manufacturing capacity as well as the organizational bandwidth to handle a higher growth rate, let’s say 30, 35%, 40% kind of CAGR, in case we do get demand on those lines.
Saloni Wagh
So yes, in terms of capacity at the moment, we are well taken care of because module E has become operational and we have also undergone maintenance activities for some of the older blocks. Also, if these products were to ramp up beyond that 20% expectation, which we know that they would, we have already taken care of those. On the capacity front, we also have, as you are aware, we already have bought a land parcel near Patal Ganga where we will be setting up in the near future a new site, mainly a combination of API as well as finished formulation.
So that would also take care of the next leg of expansion. So on the capacity side, we are well taken care of to grow beyond that 20% range as well.
Unidentified Participant
Thank you so much, ma’.
Unidentified Participant
Am.
Unidentified Participant
Thank you for answering the question wish you all the best.
Saloni Wagh
Thank you.
Unidentified Participant
Thank you. The next question comes from the line of Shyam Sampath with MSC Capital Partners. Please go ahead. Yeah. Thank you so much for the opportunity. So my first question is for Patal Ganga. When do we start investing in the new facilities there? I know it’s part of the next leg of growth. But I just wanted to understand the internal thought process over here of when you plan to commence construction. And because you would also need to get the plant audited, right from regulatory authorities like eug, mp, US fda.
Saloni Wagh
Yes, it is just cleared by the environment clearance because we were not the direct taking part for ec. EC was a part of the total Maharashtra Industrial Development Corporation which they recently got it after. I am meeting the Environment Secretary and the chairman of the the committee now we are just waiting to get the things on their website. Once the website they get it within next 15, 20 days. I think by the monsoon end we will take the position. We already have planned what we are going to do there. We have our drawings, everything is ready.
Once the position is taken by us, we will start moving there for construction activity. And we will do it.
Unidentified Participant
Okay, thank you. The next question is in terms of the split for backward integrated products. What does it look like across regulated and semi regulated markets? If. If we can get the revenue share and the number of products also that would be very helpful. We don’t give a separate split of backward integrated products into regulated and semi regulated. See overall the backward integrated share is beyond 80%. And of we have already specified in our speed the care of regulated markets.
Satish Wagh
You know our basically our some of the old products, even our new products. I’m regularly telling that our competitors are China. The people who are currently buying all over the world is coming from the non GMP plants. Because there is no source. People buy because they are hard pressed. But those products. When it comes to our facility, we say that it is a U.S. fDA EUGEMP accredited facility. So we are confident to get business and also to get better price.
Unidentified Participant
Okay. Okay. Thank you. The next question is if you look at gross margins, is it more to do with product selection or number of backward integrated products and their revenue contribution or does it have to do more with geographic revenue contribution? Because if we as in. If we introduce a molecule in Europe and North America, we start getting better realizations. So by virtue of that our gross margin increases.
Saloni Wagh
We don’t talk on gross margins but EBITDA margin. Definitely it is a product of. It is a mix of the product basket as well as the geographic, I mean, countries where we are selling. So it’s a combination of both. Depends on the product and also the market in which we are selling the product.
Unidentified Participant
Okay, all right. And when you say two, three years down the road that you start introducing new and new molecules in the regulated market and our revenue contribution from those geographies in both absolute and percentage terms, it starts going up. Do we see gross margins inching up? Not an exact number, but just a direction of how can we understand this?
Saloni Wagh
So what will happen is that, yes, you’re right, once the product moves into the regulated market, definitely the margin profile of those products would be better. But for us, because for the next three, four years we are anticipating that every year we’ll be introducing new products in the basket. There will always be some products which would be there in the semi regulated markets. So that cycle for us in the next three to four years would be ongoing. And that is the main reason why we are indicating that 33 to 35% kind of margin while we are capable of doing even better.
But because every year the new products will come, they will be in semi regulated markets, there will be that slight compression.
Unidentified Participant
Okay. All right. And a bookkeeping question on the revenue from DSM Firmanic project for this quarter.
Saloni Wagh
This quarter, like I said, it was not very high because we have just applied to them some trial quantities for food and pharma. But in this year you can expect about 30, 35 crores of revenue coming in from DSM for the full year.
Unidentified Participant
Okay. All right. And if you were to look at growth split across volume and value, what would it look like?
Saloni Wagh
I would say for us, for us at this point it would be 50, 50%.
Unidentified Participant
Okay. All right. One, one last question from me. So we are saying that Europe and North America, they offer better realization. So that would mean that it would offer better gross margins. Right. But the data is contradicting this narrative because if we look from FY22 to FY24, the revenue contributions went up by 14%, but our gross margins actually went down. And then FY24 to 25, the revenue contribution from Europe and North America, it fell by 7% and our gross margins went up. So I think it contradicts. See, there is nothing called a contradiction here. If you look at, that’s an absolute number.
So you cannot have a direct apple to Apple comparison. If you do like that sort of a percentage basis, it might not be giving a relevant picture.
Satish Wagh
Yes.
Unidentified Participant
Okay. All right, thank you. Thank you so much. These are all my questions.
operator
Thank you the next question comes from the line of Vivek Gautam from GS Investment. Please go ahead.
Unidentified Participant
Yeah, so my question is about the impact, likely impact of President Trump asking the pharma companies to reduce the pharma prices in US and we have been given a deadline. So what sort of impact can it have on our CDMO and CMO sectors even though we might not be having direct exposure to us because if the prices of the US is the costliest drug market in the world and which is funding lot of R D, lot of new innovation.
So can it have some impact on the EDMO CMO sector for us also sir, and for Indian pharma companies in particular. Thank you.
Saloni Wagh
So in general for us, because North America is such a small percentage of our revenue today and even on the CMO CDMO front, most of the opportunities what we are discussing is across Europe and Latin American markets. So for us as a company, I don’t see it as a big impact for the next three to four years at least. And also in CMO CDMO space depends on the kind of products that you’re doing. So even on the API advanced intermediate side and also on the finished formulation side, the product selection, what we have is very, very niche.
So for that kind of product basket what we are offering we are not anticipating any sort of, you know, dip in our revenue or margins because of this current US tariff situation.
Unidentified Participant
Okay. And last question is about the opportunity size for US expected growth rate and any differentiator which for our company versus competition. Thank you.
Saloni Wagh
So some of the new products, what we are launching like anesthetic has a 300 million dollar market size. For the ADHD molecule it’s about 90 million. For the cardiovascular intermediate it’s about 100 million. So we have a large basket of products which is getting launched in the upcoming quarters and their market size is also very, very large. Like our chairman also mentioned, I think one of the biggest differentiators between us and a lot of other API companies is the backward integrated model that we have. So for all the new product launches we have been able to crack a technology that is better than what is available in the market today.
Then we have been able to fully backward integrate our process. We have also set up very large capacities for these products at our site. So with a combination of all these three things I think we are well positioned to get good market share for these products in the next three to four years.
Unidentified Participant
Thank you.
operator
Thank you ladies and gentlemen. Due to paucity of time, that was the last question. On behalf of Supriya Life Science Limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.
Satish Wagh
Thank you.
Saloni Wagh
Thank you.
Krishna Raghunathan
Thank you.