Supriya Lifescience Ltd (NSE: SUPRIYA) Q3 2025 Earnings Call dated Jan. 27, 2025
Corporate Participants:
Prachi Ambre — Investor Relations
Unidentified Speaker
Satish Waman Wagh — Whole Time Director & Executive Chairman
Krishna Raghunathan — Chief Financial Officer
Saloni Satish Wagh — Managing Director
Analysts:
Nirali Shah — Analyst
Aditya Pal — Analyst
Unnati Bhavekar — Analyst
Mohit Pungliya — Analyst
Unidentified Participant
Tushar Bohra — Analyst
Nikhil — Analyst
Shubham Harne — Analyst
Presentation:
Operator
And please wait while you are joined to the conference. The conference is now being ladies and gentlemen, you have been connected to the Supriya Life Science Limited, please stay connected. The conference will begin shortly ladies and gentlemen, good day and welcome to the Supria Life Science Limited Q3 FY ’25 Earnings Conference Call. As a reminder, all participant lines will be in 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. I now hand the conference over to Ms Prachi. Thank you, and over to you, ma’am.
Prachi Ambre — Investor Relations
Limited, I send a warm welcome to all participants in Q3 and nine months FY ’25 Financial results discussion call. Today on the call, we have Dr Satish, Executive Chairman and Whole-Time Director; Dr Saloni, Managing Director; Dr Krishnar Agunadal, 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 beliefs, opinion, expectations as of today. These statements are not a guarantee of our future performance and involve unfortunate risks and uncertainties. With this, I would like,
Unidentified Speaker
Are you there? Hello are we disconnected? Hello are you able to hear us?
Prachi Ambre — Investor Relations
Yeah, Dr, you can you.
Unidentified Speaker
Yes, start.
Satish Waman Wagh — Whole Time Director & Executive Chairman
Good afternoon and warm welcome to all the participants. Thank you for joining us today to discuss the Q3 and nine months financial year ’25 results of Supria Life Science Limited. To take us through the results and answers to our questions, along with me are Dr Saloni Vag, Managing Director; Mr Krishnar, Chief Financial Officer; and our Investor Relations team, Oriental Capital. I hope you have done, you have had the opportunity to review the financial results and investor presentation, which have been uploaded on the stock exchanges and our company website. It gives me an immense pride to share that Supria Life Science has delivered another quarter of outstanding performance, maintaining our strong growth momentum at Q3 financial year ’25. Revenue from operations grew by an impressive 33% year-on-year to approximately INR186 crore, driven by robust demand across our product portfolio. Our operational efficiency and strategic focus on high-margin niche products have translated into exceptional EBITDA margin of 35.5% and a PAT margin of 25%. These results reflect our unwaving and commitment to operational excellence and disciplined execution. Supria Life Science continues to be a well-established leader in API manufacturing, specializing in differentiated value-added products with limited competition. Our fully backward integrated business model spanning K therapy areas such as anesthetics, anti-asthematic, decongest and anti-gov gives us a distinct advantage in ensuring supply-chain security and cost-efficiency. We are continuously expanding our portfolio with new and critical molecules and strengthening our presence in regulated markets. Looking ahead, we remain on-track to launch new products in such therapeutic segments, including anti-stimulants, anesthetics and and anti-diabetic to meet growing market demand. This quarter, exports contributed 85% of our total revenue, up from 74% in the same year last — same-period last year, reflecting our increasing penetration into regulated markets that command premium pricing. The LatAm region in particular has demonstrated remarkable growth contributing 21% of the revenue this quarter compared to 8% in the corresponding quarter last year. Additionally, we are witnessing strong traction in the North-America and Africa for our key products, further advancing our global expansion strategy, our transformation from a generic OTC providers to an innovative leader in regulated and high-margin markets and built on the trust of our diverse customer-base of our 1,500 clients across 120 countries. During the quarter, we achieved significant milestone by commissioning the Module E block at our Lote facility, adding 335 KLPD to our capacity and taking the total capacity to over 1,000 KLPD. Our facilities are approved by major regulatory bodies, both including USFDA, Health Canada, EDQM, Envisa, TJ Australia, etc., which positions us strongly in a market where supply-chain security and GMP compliance are paramount. We are also capitalizing on the China One policy by launching products that reduce the dependence of China and leveraging our new formulations and R&D facility in. These efforts further bolster our CMO and CDMO business, supported by our backward and integrated model and long customer relationship. We remain confident in achieving our revenue growth guidance of 20% while maintaining strong margins. Our long-term goal of doubling revenue to INR1,000 crore by financial year ’27 remains firmly on-track, supported by the expansion of existing molecules in the regulated market and robust pipeline of new products. Our strategy includes launching at least four new products annually, ensuring we remain at the forefront of innovation of APM manufacturing. With that, I will now hand over to our CFO, Mr Krishnar Agunathan, who provides a detailed overview of our financial highlights of quarter three financial year ’25.
Krishna Raghunathan — Chief Financial Officer
Thank you. Thank you, sir. Hello, everyone, and good morning. I will now share the operational performance of the quarter and following which we will open the floor for question-and-answers. In Q3 FY ’25, our revenue from operations grew to approximately INR186 crore, marking an impressive 33% year-on-year growth compared to INR140 crore in Q3 FY ’24. This strong performance extended to the first-nine months of FY ’25 with revenue reaching approximately INR512 crores, reflecting a 24% increase from INR412 crore in nine months ended FY ’24. Moving to EBITDA, we delivered robust growth with EBITDA for Q3 FY ’25 increasing by 59% to approximately INR66 crores, up from INR41.5 crores in the same quarter last year. This translated to an EBITDA margin of 35.5%, representing a significant improvement of 591 basis-points year-on-year. For nine months FY ’25, EBITDA stood at approximately INR190 crores, reflecting a 64% increase over INR117 crore in nine months FY ’24. On the bottom-line, profit-after-tax for Q3 FY ’25 grew substantially to approximately INR47 crores compared to INR30 crore in Q3 FY ’24. The PAT margin for the quarter improved to 25%, an increase of 394 basis-points year-on-year. For nine months FY ’25, PAT reached INR137.5 crore, a 67% increase from INR82 crore in nine nine months FY ’24. With PAT margins improving to 27%, up 691 basis-points from the corresponding period last year. Our capital expenditure for nine months FY ’25 amounted to INR110 crore compared to INR97 crores during the same-period last year. For the full-year, we expect capex to close around INR120 crore to INR130 crores, primarily directed towards the refurbishment of block A, B&C at our Note facility and development at Ambarna plant. We have invested a total of INR125 crores the newly inaugurated modul manufacturing block, which is expected to achieve its peak revenue contribution by FY ’27. On the operational efficiency front, our working capital days have improved to 124 in Q3 FY ’25 compared to 134 days in the same quarter last year. We have maintained a strong financial position with a debt-to-equity ratio of 0.01 adopting a conservative approach to borrowing by utilizing only letter of credit and bank guarantees without tapping into working capital limits. With that, I conclude my remarks and open the floor for questions. Thank you.
Questions and Answers:
Operator
Thank you. Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press RN2. Participants are requested to use handset 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 Nirali from Ashika Institutional Equity. Please go-ahead.
Nirali Shah
Hi, thank you for the opportunity. I just have a few quick ones. So the first one is, could you provide an update on the progress of Module E, which we have actually commissioned in December? So that’s the first one. I’ll follow-up for the questions later on.
Saloni Satish Wagh
So module. Thank you for the question. This is Dr Saloni here. For module E, we have started commercial production from this quarter. We have already taken validation campaigns of some of the new products that we are planning to come out of this block. We expect the commercial production to begin full-fledged in the upcoming quarters, but already commercial production for validation batteries are starting.
Nirali Shah
Okay. The second one is that in the previous call, you had mentioned that we have some three to four opportunities on the advanced intermediate and the API side. So what kind of growth can we pencil in over the next two quarters from these opportunities? And just trying to understand that, are these significant enough to materially impact the top-line? And if also you can which geographies are being targeted and these opportunities?
Saloni Satish Wagh
So yes, we do have a lot of opportunities in advanced intermediate as well as API space in contract manufacturing. However, these opportunities are currently at negotiation stage or at contract signing stage. So we do not expect any top-line generation from these at least for the next couple of quarters. You will only be able to see the impact of these on the revenue in FY ’27 on the whole as CMOs, including the current opportunities what we have and the new opportunities which are there in our pipeline. We expect in FY ’27 CMO to contribute closer to 20% of the total revenue.
Nirali Shah
So none of the advanced intermediate opportunities or we are witnessing in FY ’26, right?
Saloni Satish Wagh
So no, we will not be able to because any contract manufacturing opportunity takes minimum two to three years to start giving commercial revenue.
Nirali Shah
Okay, understood. And just last one. Have we secured the FSI license for the protein project? How are we progressing on this? And just specifically on the way protein project, what is the next trigger?
Saloni Satish Wagh
Yes, actually we have a very good news on that front. Just last week, we have already received our excessive CRI license and now we are going all-out in the market. Our marketing partner has already contacted a lot of large distributors of protein. So we are actually expecting some revenue contribution happening in FY ’26 from the Way Protein project or how much I will not be able to tell at this point because this is a completely new product which is getting a plan to launch in the market. So the volumes depend on what kind of traction the product — end-product gets in the market. But we are very hopeful because the product is extremely novel. It has shown great benefit in the whey protein market. It’s a differentiated product, which has not happened in the last many years in this space. So we are very confident now that we have the FSSI license, we will start getting good revenues from this opportunity in FY ‘265.
Nirali Shah
That is fantastic. Congratulations on that, sir.
Saloni Satish Wagh
Yeah, that’s it. Thank you.
Operator
Thank you. The next question is from the line of Adityapal from MSC Capital Partner. Please go-ahead, sir.
Aditya Pal
Hi, thank you so much. Congratulation.
Krishna Raghunathan
Aditya, we are not able to hear you well. Can you be a bit louder? And can you put your background something on you, please?
Aditya Pal
Better, better now?
Krishna Raghunathan
Yeah, now it’s better.
Aditya Pal
Yeah. So first of all, many congratulations to the management. Fantastic set of results. I wanted to quickly understand, so there was a slight decrease in gross margins when we look in quarter-on-quarter basis. So wanted to understand that even though we saw an increase in revenue contribution from our backward integrated products, is this a purely product mix thing or because there — or there is some geographical color to it as well? And what is the gross margin that one should work with?
Saloni Satish Wagh
So this year, we never guide on gross margins. So I will not be able to give any guidance even today on gross margin. On EBITDA margin, yes, I can guide and the EBITDA margin is a product of the geographic and product mix. So depending on what product is moving in which geography, there could be an impact on the EBITDA margin quarter-on-quarter. But for this financial year, I’m not guiding anything for quarter-four, but for the full financial year, we would like to guide an EBITDA margin of 34% to 36%.
Aditya Pal
Understood. But, if you can just help me understand that a decline in gross margin this quarter was because I’m seeing that revenue from our acquire integrated products quarter-on-quarter increased from 74% Q2 and 77% this quarter. So just from my knowledge, how do I — how do I look at it? What do I try to out of it?
Saloni Satish Wagh
Like I said, I will not be able to comment much on the gross margin. We never have in the past also and we would like to moving forward also not give any comments on the gross margin. Any questions around the EBITDA, definitely I can answer this.
Aditya Pal
All right. So export share this quarter was 85%. What would — what would the regulated share be this quarter compared to last quarter? Okay. Sorry, last same — same quarter last period.
Saloni Satish Wagh
This quarter, I think we are closer to almost 50% 45% is coming from the regulated market, closer to 45%. And if we look at the same quarter last year, it would be somewhere less than or closer to 40%. So there is definitely an increase in the regulatory market-share contribution. And for this quarter specifically, I would like to highlight that LatAm has really demonstrated good growth because for the same quarter last year, we did only about 8% of the total revenue from LatAm market. But as we have said in the past calls also, we have actively registered a lot of our existing products there. We already have approval on 10 DMFs from Cadifa. So I think that is now showing revenue generation and LatAm this quarter has contributed almost 21% to our total revenue. So I think the major growth on this quarter in regulated markets has come from LatAm.
Aditya Pal
Understood. Just last question, if I come back-in the queue. I’m thinking a bit longer-term, two to three years out now. So we have a couple of land parcels. So Dr Vag had already explained about what is the plan with Patalg and the land parcel, but the other two land parcels, right, one that we are going to use for backward integrated and there is another land parcel. So what is the strategy of utilizing these, what is the roadmap? What is the capex that we are planning to do? And secondly, if we are planning to produce some final products, we will also need to get it, we will also need to think about the regulatory timelines as well. So if you can help me just understand that aspect.
Saloni Satish Wagh
So one of the land parcels, we are already utilizing, like you rightly said for backward integration, we are producing n minus 2 stage of a lot of our existing products from this site. But in the next couple of quarters, we will be refurbishing this site and it could be potentially used for some of the advanced intermediate API CMO opportunities that we are getting because where we have the capability of designing the facility as per the requirement of the project. The other land parcel, which is actually very close to our existing facility, which is the A21 land that we will be utilizing for the protein opportunity because of protein volumes in the future could be significantly higher. So that would be done from that as well as for warehousing activities because all our existing products are growing, we are adding new products in the basket. So we will run-out of warehousing capacity from the current site. So the A21 plot will be predominantly used for wait routine volume scale-up as well as warehouses for the existing set of products and the new products which we’ll be launching?
Aditya Pal
Understood. Understood. Thank you so much and wishing you and the team all the very best. Thank you. Thank you so much.
Operator
Thank you very much. The next question is from the line of Charvin from Share India. Please go-ahead.
Unnati Bhavekar
Hello. Good morning.
Saloni Satish Wagh
Hello. Yes, good morning. Yeah.
Unnati Bhavekar
This is Bharekar from Share India. I have two questions. Could the average selling price of ketamine or anesthetic products will be higher than that of anti-histamine or vitamins or how is the pricing trend for ketamine vis-a-vis anti products? That is the first question.
Saloni Satish Wagh
Nati, sorry, we will not be able to talk anything product-wise.
Unnati Bhavekar
But could you just give a general sense of how is the trend, whether it is positive or spoken about —
Saloni Satish Wagh
We have never spoken anything product-specific and we don’t intend to do that in the near-future as well. We will only guide therapy-wise. So we will not be able to give any guidance on any specific products.
Unnati Bhavekar
So could I re kind of reformulate this question. So anesthetic products will be a better price compared to or vitamins, is it?
Saloni Satish Wagh
No, it is nothing like that because for us, anesthetic basket is multiple products. It’s not just one-product, it is at least a set of eight, nine products. Again, it only purely depending on the product, the regulatory market where it is going. So there are many mines or anti-allergy products, which could be higher price in some of our anesthetic products as well. So it is very product-specific.
Satish Waman Wagh
Okay. Madam, all these products to understand, we have almost spent our 40 years of life. So we’ll not be able to disclose anything unless and until we are confident about that. And we will do that for ourselves, the product selections and all. We cannot discrease anybody.
Unnati Bhavekar
Okay. Okay, sure. So in case of Latin-America, the contribution has increased considerably in this quarter to about 21% of the total revenue. So it is considered a regulated market or a semi-regulated market? And any comments over there? And is the pricing considered equally premium in the LatAm market compared to rest of the world?
Saloni Satish Wagh
So yes, LatAm definitely for us is a regulated market because the authority, Cadifa is very, very stringent and the registration process in Brazil is much more stringent and it is comparable to even US-FDA and EU. So we consider it as a regulated market. But because the volume demand from Latin-American markets is usually on the higher side, the price is not — although it is a little premium as compared to the other markets like Southeast Asian markets and domestic market, it would probably not be as high as some of the European markets.
Unnati Bhavekar
Okay. Okay. Okay. So volume growth could be higher in LatAm is what you’re seeing.
Saloni Satish Wagh
Yes. And for some products, like I said, it is definitely better than Southeast Asian markets and the sort of semi-regulated market is definitely higher than that, but not as high as North-America and Europe.
Unnati Bhavekar
Okay. So this increased backward integration could have played a part in the improved margins, right, on the gross profit front.
Saloni Satish Wagh
Like I said, we are constantly trying to backward integrate more-and-more products. We are also trying to constantly penetrate existing set of products in more regulated markets. We have applied for a lot of CEPs, US, EMS. So margin, like I said, EBITDA margin is driven by two things. One is the backward integration, which we focus on which tries to bring our cost-down and the other is penetration in the regulated market where we get better average selling price. So we are constantly trying to improve our margins.
Unnati Bhavekar
Okay. So you had earlier guided that second-half of ’25 is going to be a little weaker for non-anesthetic products. So you would have kind of in this quarter have more than made-up with the — this anesthetic products doing far better than expectations. So do you expect this trend to continue in the rest of the year for anesthetic products.
Saloni Satish Wagh
Like I said for us, growth will come not only from the anesthetic products. We are also expecting good growth happening in vitamins,. And in anesthetic products, we have a basket of about eight, nine products. So we are seeing good growth in all the individual products. So I think the trend would remain the same for quarter-four as well. On the guidance on the margin, like I said before also, we are expecting to close this year with 34% to 36% EBITDA margin.
Unnati Bhavekar
Okay. Okay, great, great. Thanks. Thanks.
Operator
Thank you. The next question is from the line of Mohit from Research. Please go-ahead.
Mohit Pungliya
Hi, hi, man. This is Mohit from Subla Research. Firstly, congrats on a good set of numbers. Ma’am, I just have couple of questions. First, in earlier, you mentioned that you are increasing your — the increasing demand from North-America and Africa. So just wanted to know means what is the progress on that and what percentage of revenue we can expect from that business in future?
Satish Waman Wagh
Your voice is not tougher. Y
Krishna Raghunathan
Ou are not able to
Satish Waman Wagh
Tell you how many sound is coming from your backing,
Saloni Satish Wagh
We were not able to hear the question very clearly
Mohit Pungliya
Now I suppose it is clear.
Saloni Satish Wagh
Yeah, slightly better.
Mohit Pungliya
Yeah, so, sir I was just want to know that earlier you mentioned that the demand from North-America and Africa regions are increasing. So just wanted to know that what are we planning on that business and that reason and what is the progress? And what percentage of revenue we can expect from that.
Saloni Satish Wagh
So for us, North-America as of now is very stable. You know, it only contributes about 4% to 5% of the total revenue, but we are hopeful that with some of the new launches that we are doing in-quarter four — beginning from quarter-four itself, we are launching two new products. So once the new products launched, the North American market contribution will go up. Right now, the main markets which have given the growth are Europe and Latin-American markets. As I said before, LatAm has grown from 8% to almost 21% and Europe is pretty stable at around 40% 42%. So these are the two main markets which have given us the growth. But in due course with the new launches, I’m sure that North American market would also scale-up.
Mohit Pungliya
And then my second question is like we are backward integrating. So what percentage we can expand towards backward integration? And in what therapeutic areas we are planning for backward integration except anesthetics or.
Saloni Satish Wagh
Backward integration, we do as a across all products. It is not limited to any particular therapy. Whenever a product reaches a certain volume threshold, we definitely move that product towards backward integration. Sometimes it is not possible to have backward integration from day-one. But we have that vision that, yes, once this product has reached this volume, we will have a fully backward integrated product. Today, backward integrated products are almost contributing to 77% of our total revenue and we intend to keep that trend. We want to grow that trend and we would like to have a fully backward integrated basket.
Mohit Pungliya
Okay, ma’am. Thank you, and good luck for the future.
Operator
Thank you so much. Thank you. Participants are requested to press star and one on the touchstone telephone to ask our questions. The next question is from the line of Sahil from MNS Associates. Please go-ahead.
Unidentified Participant
Hi, good morning. Am I audible?
Krishna Raghunathan
Yeah. Yeah.
Unidentified Participant
I had a couple of questions. Sir, how do you view our CMO, CDMO potential, particularly in leveraging the China Plus One strategy?
Saloni Satish Wagh
Okay. So yes, we see a lot of opportunity there because we are one of those manufacturers who has a very strong regulatory and manufacturing background. We have a site which is approved multiple times by USFDA, by EUGMP, by Health Canada, more than 50 regulatory authorities over the globe have already-approved our site. So we are very strong when it comes to regulatory, EHS and all these aspects. So any company who has that strong track-record in EHS regulatory manufacturing quality will stand to get a lot of benefit from this China Plus One strategy because a lot of the global customers are now looking for manufacturers who can give them high-quality products and there is a supply-chain stability. And because we have a backward integrated model and we do not buy any advanced intermediates from outside, we have a very, very robust supply-chain. So we are getting a lot of opportunities in API and advanced intermediate space.
Unidentified Participant
. Okay. And my next question is, are there specific reason for therapeutic segments where you see untapped opportunities for Supria Life Sciences to explore?
Saloni Satish Wagh
Yeah. So like I said, we are adding new therapies in our product portfolio, like we are adding anti-anxiety, we are adding anti-diabetics. Even in the anesthetic portfolio itself, we are adding at least four new products. So there is a lot of area for us to grow. In fact, in the last couple of quarters only we have strengthened our R&D. So now our R&D is up and running and we can churn out at least three to four new products every year. So you can expect new product launches from us beginning this quarter for itself of this financial year. Every quarter, you can expect at least one new product launch happening.
Unidentified Participant
That’s surely sounds promising. That’s it from my side. Thank you and all the best.
Saloni Satish Wagh
One more therapy I missed out is we are also going into contrast media. So we are also launching two, three APIs in contrast media. So that is another therapy what we are adding?
Unidentified Participant
Okay. Okay. Thank you, ma’am for the detailed response.
Operator
Thank you. The next question is from the line of Tushar from Emkay Ventures. Please go-ahead.
Tushar Bohra
Yeah. Thank you so much for the opportunity. Congratulations to the management for delivering a good set of numbers. And first of all, just to the previous participant, you mentioned about contrast media. Maybe you could explain that a bit more — some more qualitative comments around that. What’s the size of opportunity? What are the products looking at and how soon, what timelines are we looking at?
Saloni Satish Wagh
So in contrast media, we found a lot of opportunity where the manufacturing is very, very concentrated and there are only one or two manufacturers globally who are catering to the demand. The demand for contrast media products is growing because surgeries are on rise. So definitely the growth is there in these kind of products. We are working on two and three — two or three products in this area. While at this point, I will not be able to disclose the name of the product, but we are expecting to launch our first product of contrast media in-quarter two of next financial year. The volume is definitely very, very large globally and these products are also value-wise also, they are very large movies. So we can expect by FY ’27 contrast media products to be large contributors to our revenue, but around quarter one of next year, we’ll be able to disclose more details on this.
Tushar Bohra
And second, the formulation opportunity at that you’re working on, you had highlighted a bit more about that in previous quarters. Maybe if you can explain the status of that product. Also, what else is being planned at Ambernath now that the site is almost up? So the Amberna site is almost ready.
Saloni Satish Wagh
We are expecting to start production in this site from quarter one of next financial year. We are initially focusing on liquid inhulation that is going to be Phase-1 for us. The liquid inhalation line is already set-up and we are getting good traction for that because like I said with this line of products also the manufacturing is very, very concentrated and globally the demand is catered by only one or two players. Our facility is going to be a pure CMO site on finished formulations. We are not intending to come up with our own brand. This is just to cater to the demand of regulated markets. Like I said, liquid emulation slightly is Phase-1. Quarter one, we will start production and you can actually expect revenue generation happening from the side in-quarter four of this financial year. Once Phase-1 is done, we are also planning tablets and capsules as Phase-2. We have already set-up the line, but the demand and everything we will be able to give guidance in the next coming quarters?
Tushar Bohra
Ma’am, would you also like to highlight a bit more about some of the upcoming CMO CDMO opportunities? You mentioned that we are working on a few projects. Any more qualitative details that you can highlight on that?
Saloni Satish Wagh
Yeah. So yes, we are working on two, three opportunities which are very similar to the DSM opportunity that we have where we have APIs and advanced intermediate demand from some multinational customers. The contracts with these customers are already signed and we are now catering to their validation volume. The individual contribution of these products might not be very large, but still they are to the tune of around INR25 crore INR30 crores individually and we are discussing two, three such opportunities. I think in the next financial year, at least two of these, we will be able to commercialize. Again, like I said before, we’ll be able to disclose the name of the customer probably in-quarter one of the next financial year
Tushar Bohra
Got it, ma’am. On the DSM project itself, what’s the update — status update?
Saloni Satish Wagh
Yeah. We are supplying our first commercial quantity to them in-quarter four, approximately 5 to 10 metric tons their demand. So we have already started. I mean the production is ongoing right now and in-quarter four, you will see some sales happening to DSM. We already have a firm forecast from them for the next financial year, which is very, very encouraging. We have got about 25 30 metric ton of forecast from them. So the project is moving really well and we are on-target of taking it to full potential by FY ’27.
Tushar Bohra
Thank you. Thank you, ma’am. One last question from my side. North-America is still low-single digit for us. Do you expect that even with growing contribution from LatAm and maybe Europe being strong, do you expect North-America can become more important for us in percentage terms, maybe a double-digit over the next couple of years?
Saloni Satish Wagh
So yes, while North-America will grow, I think at least in the near-future, I’m talking at least in the next two to three years, Europe and LatAm would still be the larger market for us because we will take at least two to three years to get the project developed and to start delivering the product. But yet after three years, it could be a slightly bigger contribution from North-America. We are expecting it to grow to almost 10% in the next three to four years. But like I said, Europe and LatAm will continue to be the larger market for us.
Tushar Bohra
Thank you. Got it. Thank you so much, ma’am. I’ll join back-in queue.
Operator
Thank you. Thank you. The next question is from the line of Nikhil from. Please go-ahead.
Nikhil
Yeah, hi, good morning and congrats on good set of numbers. I just have one question on. I think when we received the approval from Envisa, we had talked about opportunity size of 200 crs. So based on our new R&D setup and all, how is the opportunity size growing and commercially based on your discussions with the customers, what is the potential revenue LatAm can reach.
Saloni Satish Wagh
So see, there are a lot of new products that we are launching now and they also have a very large market in countries like Brazil and Mexico. So the full potential of the LatAm market I’ll not be able to tell right now, but definitely the INR200-odd crores, which I referred to, some part of the revenue is already coming to us. And once the DMF is approved and the customers have also switched to us in the next two to three years, you can see the full INR200 crores coming to us. But with the newer product launch and all, I’m sure in the next couple of quarters, I will be able to give you a firm revenue generation from time. But at this point, it is too premature because we are launching at least four new products in the next financial year and all of the four have very large markets in LatAm. So maybe one, two quarters down the line, I’ll be able to give you a better projection next year.
Nikhil
Okay. And just one conceptually to — for my understanding, see, when we understand in-markets like US or Europe, when we file a product, it takes almost 18 to 24 months-to actually commercialize based on the validations and the plant approval and all. What is the timelines in LatAm market, like does the commercialization from filing to commercialization is the window is around one year? What’s the kind of time periods?
Saloni Satish Wagh
It is the same as CEP and. It takes about 18 to 24 months?
Nikhil
Okay. Okay, fine. Thanks.
Operator
Thank you. The next question is from the line of Shubham from Puratha Investment Advisors. Please go-ahead,
Shubham Harne
Hi, team. Congratulations for good set of numbers. I just want to ask API in general are witnessing pricing pressure. Does we — does we also witnessing the same for our API pricing are stable and growth is due to volumes.
Saloni Satish Wagh
Most of the API companies have not really focused on having a backward integrated business model. Most of the API players today also rely on advanced intermediate sourcing from countries like China. And when you are sourcing advanced intermediates from outside, there is very little room for you to work on the raw-material cost because it’s only one or two-step that you do in-house. We have a backward integrated business model since the inception, our Chairman has believed on working on a backward integrated business model. We only by starting raw materials, which are cheaply widely available chemicals from outside. So in our case, because we do seven steps, eight steps in-house. We have a better grip on the raw-material costing as compared to the other manufacturers. Although overall, yes, there is some erosion happening in the API prices because we have a very strong backward integrated model in-place. For our set of products, we are not seeing that kind of erosion. For us, the growth is going to be very stable moving forward also.
Shubham Harne
So is there in pricing, but not much.
Saloni Satish Wagh
Not much. So we — our set of products, I don’t think we will be very much impacted by them in any of the markets. Plus, like I said, we are constantly focusing on more regulated markets. We are getting CEPs, USDMF for the other products also in the portfolio. So once they start revenue generation, the margins will be maintained. So we are very confident that in terms of growth in revenue as well as the kind of margins we are doing, for us moving forward, it’s going to be very stable.
Shubham Harne
Okay. And we are — we are generating volumes also. We are growing in volume terms.
Saloni Satish Wagh
Yeah, absolutely. In fact, some of the new products what we are launching in the next couple of quarters, these are higher-volume products globally. And with these products getting launched, you can see the revenue growth happening very fast. So that is why we are targeting to double our revenue by FY ’27.
Shubham Harne
Okay. Thank you.
Operator
Thank you. The next question is from the line of Jay from JS family. Please go-ahead.
Unidentified Participant
Hello. Hi, am I audible?
Saloni Satish Wagh
Yes, if you are audible.
Unidentified Participant
Hi, congratulations for a good set. I just want to know more about the contract media intermediates. I agree you cannot talk more about the product. But can you at least talk about what kind of chemistry you are pursuing because there are majorly two chemistries, and ID. So would you be able to say that what chemistry are you pursuing and what kind of integration you have and what kind of raw-material control do you have in the chemistry that you’re pursuing?
Saloni Satish Wagh
So for all the products that we are launching in contrast to media, we are again going for a fully backward integrated business model. We are actually — our R&D themselves have developed the product into. So we are not going to outsource any advanced intermediates from outside. We will be making our own advanced intermediates. We have been able to find alternate process where we are able to sort of bypass that uses. So we are very confident that once these products commercialize, we’ll be able to start getting good traction. And we don’t intend to be in advanced intermediates. We are planning to go all the way up to the API level and we are getting good traction from a lot of regulated customers and we are very confident that after launching, we’ll be able to convert customers very fast.
Unidentified Participant
Okay. So now that you’ve said that you would be able to bypass the ROD usage. So can you just tell me that what kind of then the waste recycle or you know solvent recovery would you have in the chemistry that you are pursuing? Would we be able to get all the solvent back-in the chemistry that you are pursuing?
Saloni Satish Wagh
Yes, definitely. I think whenever we work on a process and because we are very strong when it comes to the solvent recovery manufacturing EHS aspect of, the process which has been designed is considering solvent recovery. And it’s too premature right now to talk because the product is just out of R&D and in validation stage. So once we complete validation and we take-up commercial batches, we would be in a better position to come in. But whenever the process is developed, it is developed with a full backward integrated model, taking into account all the solvent recovery aspects as well.
Satish Waman Wagh
And my submission will be that my submission will be for you, just listen carefully. We have to make everything at our plant. If you keep on buying from China, you’re aware the product which you buy from China is from a non-GMP plant. We will continue with that with the regulatory departments, not at all. So that is why if I keep on buying the n minus 1, n minus 2 from China and if they are coming from the non-GMP plant, my business is finished. So that is why I have decided 20 years back that everything what we manufacture, slow and steady, but we will manufacture everything in our plant from the basics. That’s the attitude and that’s the style we are working. I hope you understand that.
Unidentified Participant
Yes, sir. Thank you so much for the clarity — clarity and the detailed answer. All the best for the future.
Operator
Thank you. Thank you very much. In the interest of the time, that was the last question. On behalf of Supria Life Science Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Lines. Thank you