Supriya Lifescience Ltd (NSE: SUPRIYA) Q3 2026 Earnings Call dated Feb. 10, 2026
Corporate Participants:
Ms. Neha Salian — Investor Relations
Dr. Satish Waman Wagh — Chairman & Whole-Time Director
Krishna Raghunathan — Chief Financial Officer
Dr. Saloni Satish Wagh — Managing Director
Analysts:
Tarun Krishna — Analyst
Aashish Upganlawar — Analyst
Nishita Shanklesha — Analyst
Nirali Shah — Analyst
Shyam Sampat — Analyst
Nikhil Upadhyay — Analyst
Nirmam Mehta — Analyst
Karan Rathod — Analyst
Dheeraj Kumar Reddy Dosakayala — Analyst
Adityapal Singh Jaggi — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Supia Life Science Limited Q3FY26 earnings 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 the conference call, please signal an operator by pressing Star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Neha Salian for her opening remarks. Thank you. And over to you, ma’. Am.
Ms. Neha Salian — Investor Relations
Thank you, Iqra. A warm welcome to all the participants to the Supriya Life Science Limited Q3FY26 earnings conference call. The investor presentation and the financial results are available on the company website and on the stock exchanges. Please note, anything said on this call which reflects our outlook for the future or which can be construed as a forward looking statement must be viewed in conjunction with the risk that the company faces. This conference call is being recorded and the transcript along with the audio of the same will be made available on the website of the company as well as on the exchanges.
Please also note that the audio of the conference call is the copyright material of Supriya Life Science Limited and it cannot be copied, rebroadcasted or attributed in press or media without specific and written consent of the company. To give you a brief business update and to take you through the results from the management team, we have Dr. Satish Wag, Executive Chairman and Whole Time Director. Dr. Saloni Wag, Managing Director and Mr. Krishna Raghunathan, Chief Financial Officer. I would now request Dr. Satish Vag to provide you with a brief update on the quarter. Over to you sir.
Dr. Satish Waman Wagh — Chairman & Whole-Time Director
Good morning and warm welcome to all the participants. Thank you for joining us as we Discuss the Quarter 3 Financial Year 26 Performance of Supriya LifeSense Ltd. I hope you have had opportunity to review our results and investor presentation, both of which are available on the exchanges and the company website. On that note, let me walk you through our quarterly performance. Revenue for the quarter stood at rupees 206 crores reflecting a growth of 11% of year on year driven by robust demand across the product portfolio. Our focus on operational efficiency and high margin niche offerings have delivered a 34.9% EBITDA margin and 24.1 PAT margin in reflecting strong execution.
Exports continue to be a key growth driver of the business contributing 82% of 43 revenues. Within exports, the Latam region delivered healthy growth accounting for 24% of the revenues during the quarter, while North America contributed 6% with both regions increasing their sales overall revenues complementing this, our background integration initiatives continued to advance during quarter three financial year 26, which was 74% of revenues, strengthening our cost structure and supporting sustainable growth. Turning to our recent launch pipeline, as communicated in our previous call, our product launch plans for the year remain on track. We have successfully launched a key cardiovascular product in quarter three financial year 26, expected to contribute meaningfully in quarter four financial year 26.
We also launched our ADHD product which we expect to scale up over the coming quarters. Our liquid anesthetic product has been commercialized with steady monthly supplies underway. In addition, development activities for our contrast media product continue to progress as planned. The Ambana facility is ready for capitalization. This is a key milestone for our CDMO segment. We will capitalize the site in Q4 financial year 26 reflecting the completion of commissioning and readiness of the sustained commercial operations. We stand by our guidance of approximately 20% of annual revenue growth and the EBITDA margins of 33 to 35%.
Our progress towards the rupees 1000 crore revenue milestone for financial year 27 remains on course, supported by a healthy pipeline. Plant launches our three, four products each year and steady demand across core therapeutic segments including anesthetic, anti, diabetic anti, anxiety, vitamins and adhd. Looking forward, we remain focused on scaling our presence in regulated markets and reinforcing our competition position through backward integration, strong regulatory capabilities and a diverse product portfolio. These strategic strengths combined with rising customer interest and execution discipline position us well to pursue long term opportunities while continuing to create enduring value of our stakeholders.
So with that I Now invite our CFO Mr. Krishna Raghunathan to take up you through the detailed financial performance of quarter three financial year 26. Thank you.
Krishna Raghunathan — Chief Financial Officer
Thank you sir. Good morning everyone. Let me take you all through the operational highlights of the quarter and nine months following which we will open the floor for question and answers. For Q3FY26, the company reported revenue from operations of rupees 206 crores as against rupees 186 crores. In Q3FY25, a growth of 11% year on year, EBITDA for the quarter stood at rupees 72 crores as against rupees 66 crores. In Q3FY 25, a growth of 9% year on year and EBITDA margin stood at 35% for Q3FY26 stood at rupees 50 crores. Has against rupees 47 crores in Q3FY25 at margin student 24.1 for Q3FY26.
For nine months FY26 revenue stood at rupees five hundred and fifty one crores as against rupees five hundred and twelve crores in nine months FY25 a growth of 8% year on year EBITDA stood at rupees one hundred and ninety six crores as against rupees 193 crores in nine months FY25 a growth of 1.7% year on year EBITDA margins were at 36% for nine months FY26 at stood at rupees one hundred and thirty five crores. PAT margins were at 25% for nine months FY26. Our capex for Q3FY26 stood at Rupees 28 crores whereas for nine months FY26 stood at Rupees 71 crores.
This was mainly spent towards Ambarnath facility. Going forward we expect CAPEX to close around rupees 15 crores for remaining of FY26 primarily directed towards maintenance Capex and certain small projects like Revo block and other requirements in formulations plant on borrowings. We would like to report that for the last nine 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 questions and answers. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchstone telephone. If you wish to remove yourself from the question queue you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Padun Krishna from. I thought pms. Please go ahead.
Tarun Krishna
Thank you for the opportunity. My question was on the cardiovascular product which we have launched. So in the. In the last con calls you said that we have 300 tons of visibility. Has that visibility changed or has the timeline changed? Any updates on that?
Dr. Saloni Satish Wagh
Hi, I’m Dr. Saloni Wag and I’ll be answering this question. Yes, we still have visibility over that 300 ton and we are very confident that after the successful scale up which happened in quarter three we will be able to start penetrating into that market and start getting the volume in the. Coming Few quarters Understood.
Tarun Krishna
And second question was on the A21 site which we have so based on the past conform, I understand that it will be primarily used for the protein scale up. Has the use case changed or has or any information on the capacities you can give me?
Dr. Saloni Satish Wagh
A21 is going to be used for two main purposes as of now. One is going to be the protein business that we have and the other thing is it’s also a warehouse for some of our raw materials. As far as the protein project is concerned, we are making some progress on that as it’s a very new formulation in the Indian market. A lot of the formulators are still doing R and D on that which is expected to be completed in the next three to four months. Once the R and D part is cleared, I think then the formulators would be ready to start buying commercially and launch their products.
Other than the domestic Indian market, we have also made some progress in the export market. We have supplied our samples in Australia and some Southeast Asian countries like Philippines, Malaysia, Singapore from where we are getting good traction. So all in all I would say the protein project we are making progress but for you to see any significant revenue contribution that would still take a couple of quarters.
Tarun Krishna
Got it, got it. And the last one, any timelines for the Isambe site you can give me.
Dr. Saloni Satish Wagh
For the someday site visit? I think we will still be still in the phase of, you know, finalizing the blueprint and what all will come up there. I think in another nine to 12 months we’ll be able to give more light but maybe our chairman can share some more information.
Dr. Satish Waman Wagh
I’ll give you some more information on that. As you know that every plot which normally everybody buys MIDC says that you go for environment clearances. We have specifically denied when we have taken the land and we had said MITC itself will go and they will take the environment clearance. Now they have taken two and a half years to get the EC. On the 1st of January we got the possession after hearing from them that the EC is granted and it’s available on the portal. So now we are making the blueprint then we will start working on it.
Tarun Krishna
Understood? Understood. That is it from my thread. Thank you.
Dr. Saloni Satish Wagh
Thank you.
operator
Thank you. Before we take the next question, a reminder to all the participants that you may press Star and one to ask a question. The next question is from the line of Ashish Ubganlaval from INVESC pms. Please go ahead.
Aashish Upganlawar
Yes, thank you so much for this opportunity. So just wanted to understand we’ve been guiding for Maybe around a maybe 20 odd percent kind of revenue growth and we still stick by our guidance maybe for the next year. But if I look at maybe the 12 months that have gone by we’ve had, the sales growth has been off and on this quarter it’s about 11%. And since we had a higher base of margins, our profit growth doesn’t seem to be there. So how should we read it? Is capacity a limitation or demand a limitation that we are facing right now? Because 11% seems to be on the lower side on the growth.
Dr. Saloni Satish Wagh
We are still confident that we will be able to achieve our 20% guidance for this financial year. And a large part of that would come in quarter four. In quarter three. What has happened is two main things. One is that some of the new launches that we did in quarter one, quarter two of this year, we were just trying to scale up that. So increasing of capacity scale up in terms of batch size, going in for the regulatory approvals, all that activity we have done in the first three quarters. So definitely a larger contribution from these newly launched products you’ll be able to see in quarter four.
Also in quarter three, post the 15th of December. Considering export markets are the largest for the company, 84% of our revenue comes in from export and specifically from markets like Latam and Europe. Post the 15th of December, all these markets go for holiday. So a lot of the shipments which were intended to happen end of December have now gone into quarter four. So there is a slight impact of that as well. And because we have a good visibility on the order book for quarter four, we are very confident that we will still be able to manage the revenue.
Aashish Upganlawar
Okay, so quarter four seems to be going to be pretty decent cover up for everything. That’s what the expectation is. And to understand on the margin bit because we maintained a tight band of 33, 35% kind of a number. Historically we had, I mean we’ve been tracking your company since the ipo. So there were, there was loss of a Chinese customer and then we had a profit profitability fall and sales also. So nothing in the environment that suggests right now that any sort of, that kind of a risk might come up. Right. I mean there’s no kind of inventory overhang at the customers end or something that on that front I wanted to understand.
Dr. Saloni Satish Wagh
Yeah, no, nothing like that. I think for the last two years we have been consistently guiding 33 to 35% margin and whatever dip you are seeing from the historical margin numbers is predominantly because of addition of new products. When you typically introduce any new product into the portfolio. The first scale up will happen in semi regulated markets where the margins are slightly lower as compared to when it scales up in a regulated market. And because we have been actively doing that for the last one and a half year, I think that’s the only reason why the margin has sort of normalized at 33 to 35.
We would like to write the same.
Aashish Upganlawar
Okay. Lastly, with this EU trade deal and other deals that have happened, does anything change for us on the positive or negative side as far as opportunity size is concerned?
Dr. Satish Waman Wagh
As far as Supriya is concerned, there is no change. Because in pharma there is no much change in fta. And let me tell you, fta, whatever we have, FTA will come only after one year or completion of the clearances from the Parliament of EU and the Indian Parliament. So you can understand it will take some time. It’s not that fast. You know, every FTA had its own digestion period. It’s roughly round about one year, two years. So based on the fda, you know Supriya, life science doesn’t do business. Let me tell you because pharma is a different area.
It has nothing to do with fda.
Aashish Upganlawar
Okay. Okay. Okay. Thank you sir. Thank you so much.
Dr. Satish Waman Wagh
Thank you.
operator
Thank you. The next question is from the line of Nishita from Sapphire Capital. Please go ahead.
Nishita Shanklesha
Yes, good morning. So I just had a follow up question. On the previous participant you mentioned that you’ll still be able to achieve the 20 annual revenue growth for by 26th. So to do, to do that we’ll need 284 crores of revenue in Q4FY26. So are we confident that we have that? And you mentioned that we have a good visibility in order book terms. So if you can quantify the order book that would be great.
Dr. Satish Waman Wagh
Madam, we are confident. Do you have any something in your mind? Be specific.
Nishita Shanklesha
So order book, if you can quantify.
Dr. Satish Waman Wagh
The order as far as manufacture is. Concerned and the industry follow up 40 years, we are very well confident that we will achieve.
Dr. Saloni Satish Wagh
So we will not be in a position to quantify our order book. But we would confirm that we have found visibility as to how we’ll be able to achieve this target. So we are confident. Like our chairman said, we are still confident that we’ll be able to achieve our revenue guidance.
Nishita Shanklesha
Okay, understood. And my next question is, you mentioned that we can get 2000 crore revenue in FY27. So can you like what would be the growth drivers for us to reach that thousand crores?
Dr. Saloni Satish Wagh
So couple of Growth drivers that will contribute. The first one would be the scale up of our existing product basket in regulated markets. Because we are registering a lot of, you know, CEPS and USDMs for our existing portfolio as well. The second would be the new launch of the products. Every year we intend to introduce at least three to four new products into our portfolio. And if you look at the first three quarters also we have successfully introduced about three new products in the portfolio. So that I think would be the second area of growth for us.
And the third area of growth would be our new facility in Ambarnath. So we have newly launched our finished formulation facility in contract manufacturing in Ambarnath. We expect to commission this facility in quarter four of this year. So I think revenue contribution from that facility should also start in the next year. So I think these are the three main areas where we can expect growth coming in.
Nishita Shanklesha
Right, okay. And if you could just reiterate the CAPEX numbers. I missed that part in the opening remarks.
Krishna Raghunathan
For nine months ended the capex was around 71 crores. I think if is that, is that fine with you?
Nishita Shanklesha
Yes, yes. And this Ambarnath facility, what was the total CAPEX for this.
Krishna Raghunathan
Would be somewhere in the range of 140 to 160 crores. I think once we do the final capitalization we will be able to give the final numbers. Most probably by Q4 we will be able to give them.
Nishita Shanklesha
Okay, okay, understood. And do we have some visibility on how much revenue can we generate from the Banat facility?
Krishna Raghunathan
It will be easily 2.5x of the capital value.
Nishita Shanklesha
Okay, so the answer term you’re expecting is 2.5x.
Krishna Raghunathan
Yeah, yeah, yes.
Nishita Shanklesha
Okay, okay, understood. Thank you so much.
operator
Thank you. Ladies and gentlemen, if you wish to ask a question please press star and 1. The next question is from the line of Niralisha from ashika Stock Services Ltd. Please go ahead.
Nirali Shah
Thank you for the opportunity. My first question on the DSM project. Non pharma volumes have started while the pharma qualification is still underway. So should we expect pharma applications to become the dominant revenue contributor during FY27 or is that more like the FY27 kind of a transition?
Dr. Saloni Satish Wagh
So we have actually successfully completed our pharma validation last month. So some actually commercial volume of Pharma will start as soon as quarter four of this financial year itself. But if you’re looking at a meaningful contribution because in the past we have said that, you know, DSM project at a mature stage would contribute about 60% crores of revenue for that Significant contribution to come in it would be FY27 but some small volumes they have already started taking for seeding of their pharma customers.
Nirali Shah
So I mean the first half of 27 or more of towards the second half of 27
Dr. Saloni Satish Wagh
I would say second half of 27. Okay. My second one is on the SOM6.
Nirali Shah
Did see a elevated capex. Should we think FY27 capex to be reverted close to the maintenance level of say 40 to 50 crores precisely for the FY29 growth roadmap that that we are looking forward to that. Would it include a step up towards. 80, 90, 100 crores over the next 12 to 18 months?
Krishna Raghunathan
See what we are thinking is yeah, of course there will be maintenance capex but I think we also need to do some groundbreaking for Patal Gandhi. I that is going to be there. I think that will have another 40, 50 crores to start with in the coming year. Because if you look at FY29’s viewpoint, if we might need at least testing one facility, either a formulation or APE facility from Patal Ganga that we will take a call. We will start with the utilities block the groundbreaking and the utilities block first. And once we know what sort of a demand we are getting either on the Ambarnath side or if there are pressure from Lotte.
So based on that we will ensure that we will have an API or formulation plant coming out first from Patal Ganga. So that would be the plan of action at this stage.
Nirali Shah
Got it, got it. So just lastly on the P and L perspective, roughly how many quarters after the first commercialized commercial dispatches might not turn EBITDA positive at all? Site level.
Krishna Raghunathan
We will have it. Even a small revenue coming in at Q4 itself and meaningful revenues to come from next financial year.
Nirali Shah
So EBITDA positive.
Krishna Raghunathan
It might not be immediately EBITDA positive. EBITDA positive. We might have to say somewhere around Q3 of FY27. I think that is something which we are looking at at this stage.
Nirali Shah
Okay, sir, thank you.
operator
Thank you. The next question is from the line of Shyam Sampath from MSA Capital Partners. Please go ahead.
Shyam Sampat
Hi, good morning. I wanted to ask on the ATS order book for FY27, the MIP protects us, but are we seeing any risk of customers shifting to ATS 9 and bypassing the ban? Like in the context of formulators giving supply security and locking in annual volume contracts, are they doing that today or are they still keeping their options open? If you can confirm if you have successfully commercialized Sorry, that was. Yeah, that was the first part actually.
Dr. Saloni Satish Wagh
Regarding what? I was not able to hear you clearly on the first part. I said for question.
Shyam Sampat
Yeah. Am I, am I audible now?
Dr. Saloni Satish Wagh
Yes, you’re audible.
Shyam Sampat
Yeah. The ATS 8 order book for FY27, I was saying that the MIP protects us, but are we seeing any risk of customers shifting to ATS 9 for bypassing the ban?
Dr. Saloni Satish Wagh
So as of now, the MIP, what the government has done, frankly for us, it’s not of much use because it is only applicable for formulators who want to sell their product in the Indian market. Most of the people that we are talking to are selling their finished formulations in the export market as well as the API. Export API is done in the export market. So for us anyways, that is not of a very large value addition. But for us, what works is that we have a fully backward integrated process. And even at the current Chinese prices, we are able to compete and we are able to get very good market traction from some of the large users.
We are very confident because the trials are already done at the large end user side. So with that being done and the quality getting approved, the order book, what we have for FY27, we are very confident that we’ll be able to get a large chunk of that.
Shyam Sampat
Okay, so by order book mean that do we have supply security with the customers locking in annual contracts with us or they’re keeping their options open?
Dr. Saloni Satish Wagh
So we don’t have firm annual contracts, but we already know what is the annual consumption of each and every end users and most of them are in the, you know, signing stage where they are giving us volume commitment for the next year. So we have identified that and work is in progress in that direction.
Shyam Sampat
Okay. And earlier last year during the plant visit, we had also discussed about the ATS 3 to ATS 5 reaction at scale at the facility that we have. So are we currently running this backward integration to feed our ATS8 production?
Dr. Saloni Satish Wagh
Yes, as far as R and D is concerned, we have a fully backward integrated process developed and we have already identified where we will be doing the ATSC to ATS5 conversion. So I think commercially that process should start maybe by next month itself.
Shyam Sampat
Okay. All right. And for the ATS MIP that we have, how much is the domestic market adjusting to this new pricing? Because like, are we seeing that the formulators have accepted the new import price levels of 105 plus dollars?
Dr. Saloni Satish Wagh
Not yet. I think there’s still a lot of ambiguity in the end users for accepting this price. And I don’t think it has come into full effect as of now. But for us as a company, like I mentioned, you know, the large users that we are targeting are mainly taking this product for export purpose. So that’s not anyways our targeted market and the targeted market what we have, we are very confident that we’ll be able to start seeing the commercials right from next year.
Shyam Sampat
Okay. All right. And on the EU CGMP inspection at Amber Nath for December month, has the audit been completed?
Dr. Saloni Satish Wagh
No, we were following up with the EU authority for the audit date. We are fully ready and we have been following up. We are expecting now that to happen in the next three to four months because they gave us the email saying that because of, you know, low manpower they were not able to give us immediate date. But we can expect the same happening in the next three to four months. So I guess by quarter one of next financial year we should be through with the EU audit.
Shyam Sampat
Okay. All right. And on the core portfolio with the riboflavin production, now that it’s moved to the new dedicated block, we have more freed up capacity in the legacy blocks of abcd. So how are you planning to utilize this capacity for FY27?
Dr. Saloni Satish Wagh
The ReBo flaving was always in a dedicated block because it’s a yellow product and most of our other products are white in color. So it required dedication from day one. So it already had a dedicated block but the capacity of that block was much smaller. So now it has moved into a new block where we will be running the DSM as well as our regular campaigns parallel. Previous to that we were running them alternatively because of which we were not able to cater to the complete demand of the customers. But with that moving into the new block now, we can run both campaigns parallel.
Now this block, once it is completely freed up, we still believe it would take about six to seven months for us to completely free up this block because there are a lot of regulatory implications as well. We have a CEP for this product, but once it is completely freed up in the next six to seven months, it would be utilized for scale up of some of the new products.
Shyam Sampat
Okay, what products are we looking at? Any of the growth molecules like
Dr. Saloni Satish Wagh
from our existing portfolio. But some of the new launches, what we are planning to do, maybe we’ll be allocating that capacity to some of. The new molecules
Shyam Sampat
like ADHD and those. Products,
Dr. Saloni Satish Wagh
yes, like adhd we do have anesthetic products coming up. We do have contrast media products coming up. So for some of these products that block would be utilized.
Shyam Sampat
Okay, all right. And in Europe we are seeing that the growth in Europe was slower. And I just wanted to understand what was the reason because you also have. We see the backward integrated number of products that we have. They’ve gone up from 18 to 20, but the absolute revenues have also come down this quarter. So just wanted to understand on both these points, what are the factors?
Dr. Saloni Satish Wagh
We haven’t seen any dip in Europe. The slight minor dip that you see is only on account of the shipments not going post 15th of December because most of Europe was shut for New Year’s and Christmas holidays. So as such there is no loss of business. Everything that we were not able to ship in that last 15 days of December you would be able to see in the last quarter. So as such we are not seeing any decline in the business in Europe market.
Shyam Sampat
Okay, and what about the backward integrated products part? We have gone up. But is it like the same factor
Dr. Saloni Satish Wagh
we have today? Almost 74% of the total revenue or the total products that we do. We are fully backward integrated and that number will go up as soon as some of the new product commercial launches are completed. That number would definitely go up in the. I would say, you know, between 80 to 82%. That should go up pretty quick.
Shyam Sampat
Okay, understood. My question was around.
operator
Sorry to interrupt. Mr. Sampath, sorry to interrupt. Please rejoin the queue for more questions.
Shyam Sampat
Sure. Thank you so much.
operator
Thank you. A reminder to all the participants, if you wish to ask a question, please press star and 1. The next question is from the line of Nikhil Upadhyay from Simple. Please go ahead.
Nikhil Upadhyay
Yeah. Hi, good morning. Thanks for the opportunity. Just two questions. One is on the formulation CMO which we were doing. When do you see the commercialization to begin and where are we in terms of the validation and all that is one. And secondly, like you mentioned, we have launched three products this year. And we had mentioned that with the R and D facility ready, our pace of new product launches should increase in next two to three years. These new products should contribute to what, like 10, 15% any what, what’s your sense of what would be their revenue contribution?
Dr. Saloni Satish Wagh
So to answer to your first question on Ambarnath the facility, we should see commercial revenues from quarter four of this financial year. But like my CFO explained earlier, for its full impact to come in, it would only be the next financial year. But some couple of, you know, some few revenue you can see from quarter four itself. Now the second part of your question.
Nikhil Upadhyay
New product contribution.
Dr. Saloni Satish Wagh
This year we have successfully launched about Three products in the first three quarters. And we are expecting to launch our fourth contrast media product in quarter four. We expect the same trend to continue. We don’t want to introduce 8, 9, 10 products because R and D we still are focusing on new molecules as well as contract manufacturing opportunities. I think three to four products is what we are targeting for the next two to three years. Also in the next three to four years new product contribution would be about 10%. That is what I think because for any new product also it takes about two to three years to scale up in regulated markets.
So 10% is what we are targeting in the next two to three years.
Nikhil Upadhyay
Okay, and last question. See we’ve we had a target that CDMO CMO should contribute 20% of our revenue. And I think we’ve been discussing that, we’ve been talking and there have been inquiry levels. How confident do you see of reaching that 20% contribution from CDM or CMO pipeline? Is the pipeline strong enough or any sense you are getting?
Dr. Saloni Satish Wagh
One correction is that we have said that 20% would be a combination of new products plus CMO CDMO. It’s not just CMO that will contribute 20. So combination of the new products what we are launching plus CMO CDMO would be about 20% in the next two years. And we are very confident because the CMO major business would come in from the Ambarnath facility on finished formulation. And we already have a lot of visibility on some of the first phase launches which are the liquid anesthetic. So we are very confident we’ll be able to get that kind of revenue.
Dr. Satish Waman Wagh
Sir, I just want to say something on this. You have not. People are not understood the business of Supriya. See we are confident to have the product from China. We don’t fight in India at all. Now suppose anesthetic product has a market of 2.5 billion and there are only three plants in China which are non GMP plants. Do you think that we will not get the opportunity because we are ugmp. We are US fda. So if you are a customer you will definitely switch over immediately to a regulatory site or you continue with China on price.
Nikhil Upadhyay
Correct.
Dr. Satish Waman Wagh
Understand this is the revenue pattern. Because we don’t do the products where we keep on fighting with Indian manufacturers. We don’t like that at all. We always feel good to have the products where China dominance is there. And we try to take the business from China and that too also from backward integration further we do forward integration also. So in anesthetic we are doing the same thing.
Nikhil Upadhyay
Sure sir. Thanks. Thanks for the explanation. I’ll come back in the queue.
Dr. Saloni Satish Wagh
Thank you.
operator
Thank you. The next question is from the line of Nirmam from Unique pms. Please go ahead.
Nirmam Mehta
Thank you for the opportunity. The first question is on the regulatory filings.
operator
Sorry to interrupt. Nirma, can you please speak a little louder?
Nirmam Mehta
Am I audible now?
Dr. Saloni Satish Wagh
Yeah, please go ahead.
Nirmam Mehta
So on the regulatory filings we were targeting to file DevoFlurane and CVS product the DMS in Q3. So have we filed those?
Dr. Saloni Satish Wagh
Yes, yes, we have successfully filed for USDMF as well as cep.
Nirmam Mehta
Okay. And secondly again on the CMO part of our business, so you know we were expecting two, three more products. So any update on that?
Dr. Saloni Satish Wagh
So no, mainly like I said before, also on the CMO front the major contributor is going to be on the finish formulation site from Amber Nath and this site will be commissioned in quarter four. We were expecting the EU audit to happen in quarter three like I said before but unfortunately because of manpower limitations on their end they were not able to allocate the dates to us. I think for US regulatory approval for Ambarnath site is very, very important so that we start gaining the traction of volume in regulated market. And until and unless that does not happen, revenues will not come.
Also whatever CMO revenue we are expecting would only come into full effect from FY27.
Nirmam Mehta
Okay. And the FD audit will be post that.
Dr. Saloni Satish Wagh
For the Ambarna facility. Yes. I think the first we are targeting is the EU audit because for most products what we are launching, the larger market is in Europe. Once the EU audit is complete, we will then target for the USFD audit for Ambarnath facility.
Nirmam Mehta
Okay, got it. That’s it. Thank you.
Dr. Saloni Satish Wagh
Thank you.
operator
Thank you. The next question is from the line of Karan from Invexa Capital. Please go ahead.
Karan Rathod
Hi ma’. Am.
Dr. Saloni Satish Wagh
Hello.
Karan Rathod
Hello. Am I audible, ma’? Am?
Dr. Saloni Satish Wagh
Yes, yes, you’re audible.
Karan Rathod
So my question is largely on the GLP side. So we were contemplating to enter into the fill finish side of the glp. So where are we in that business or on that plan?
Dr. Saloni Satish Wagh
Yes, so like I said, you know this is going to come from our refinish formulation facility number nutrition. We have not developed the API in the Lotte side. But our main focus is on the finish formulation on the injectable side as well as on the tablet side from Ambarnath. I think in terms of development we have already completed that validation. Batches are in progress for the injection as we speak. And once the approvals for the facility come in the regulatory approvals, we can start seeing some volume traction in some of the markets where the product is not under patent.
So we are targeting markets like Russia, Middle east where we are seeing some volume and we are seeing a lot of inquiries from these markets.
Karan Rathod
Thanks. Secondly, on the cancer detection kit, the product which we had. So where are we in terms of that.
Dr. Saloni Satish Wagh
Approval? Because it’s a novel product. The innovator, the lady who owns the patent, she’s still in discussion for the drug approval because it is classified under, you know, it’s also part of it is a drug and part of it is a medical equipment. So there is an approval which needs to go through. She’s still in conversation with the authority for the approval. I think once the approval is done, then we will start looking at the commercial viability of the product.
Dr. Satish Waman Wagh
And there also the same situation, like eu, there is no new recruitments.
Karan Rathod
Okay. Yes.
Dr. Satish Waman Wagh
They are not doing anything.
Karan Rathod
And lastly on the the CDMO CMO develop the. The project pipeline. So beyond what we had discussed in the earlier call, where are we in terms of new contracts?
Dr. Saloni Satish Wagh
So we do have a couple of large contracts under discussion. I’m very hopeful that in the coming few quarters we’ll be able to announce some. We are still in the term sheet signing kind of a stage.
Karan Rathod
Okay. Okay. Thank you.
operator
Thank you. The next question is from the line of Dheeraj Kumar Reddy from Alpha Square. Please go ahead.
Dheeraj Kumar Reddy Dosakayala
Hello, Am I audible?
Dr. Satish Waman Wagh
Yes, sir.
Dheeraj Kumar Reddy Dosakayala
I just wanted to understand if this quarter was in line with our expectations or is there any slower?
operator
Your voice is muffled. Can you use your handset?
Dheeraj Kumar Reddy Dosakayala
Hello, I’m audible now.
operator
Yeah, please go ahead.
Dheeraj Kumar Reddy Dosakayala
I just wanted to understand if this quarter was in line with the expectations or is there any spillover where we are like where the customer is actually taking the inventory in the fourth quarter.
Dr. Saloni Satish Wagh
No, like I said before also, you know, the quarter is not in line with our expectation. Mainly because of, you know, the last 15, 20 days of December not being operational and a lot of customers not being available to clear shipments on their site. So whatever last 10, 15 days we were not able to ship. All that will come as a spillover in quarter.
Dheeraj Kumar Reddy Dosakayala
That’s helpful, ma’. Am. And just wanted to understand on the CDMO side, you know, I understand the CMO opportunities which we are working on. But on the CDMO side, what is the work currently going on? Because I, I understand that there is a lot of gestation period where we have to incubate like an R D team. It takes like three to Four years because you know which phase I mean what is thought process there? I mean are we going to enter into like phase two, phase three, kind of R and D and work with like some big pharma and then moving to like commercial stage or how does it exactly work?
Dr. Saloni Satish Wagh
So like you rightly said, the gestation period for CDMO activities is pretty long. We have actually just, you know, successfully set up and brought into operation our Ambarnath R and D. So the Ambarnath R and D is working on two fronts. One is the finished formulations R and D as well as the API rnd. We just completed the full setup just a couple of months back and we are now targeting specific customers, specific markets where we would want to be in. Innovator tie up is definitely one area which we have not been in in the past but something that we intend to do in the near future.
So a lot of effort has been going on in that direction. DD teams are focusing on that and even at the senior management level we have a technical lead who is focusing on these kind of opportunities. So hopefully something will come up in the next couple of quarters. But as of now on the CDMO front we have nothing specific in our hand. Most opportunities. What we have are more on the contract manufacturing side.
Dheeraj Kumar Reddy Dosakayala
Understood. But any thought process around which are the areas we will be working on, is it peptides or is it, is it. So just some thought process there. If you can share like, it could be helpful.
Dr. Saloni Satish Wagh
So I think a firm strategy on this we will be only able to sort of put out in the public domain in the coming few quarters. As of now, because of the opportunities in hand, our major focus has been on contract manufacturing because that is a low hanging fruit for us and that can give us commercial benefits immediately. So a lot of the strategy and senior management bandwidth has been focused on that. But once I think in the next couple of quarters, once we have some kind of a strategy on cdmo, I think I will be in a better position to share share it with you.
Dheeraj Kumar Reddy Dosakayala
Got it sir, got it. That’s helpful. My last question is Ma’, am, I saw in one of the interviews with et, now I think you said, I think we are in, in a much growth phase where you have said, I think in the next five years we should be seeing like very good growth momentum. But do you think, I mean, is this like, I mean northwards of 20, 25% or you think somewhere at 20%? I just wanted to understand, I know exact outlook is not required but I just wanted to understand the management’s optimism in terms of how they can execute this.
Dr. Saloni Satish Wagh
With the current product pipeline that we have, what we are targeting with the amount of capex that we are putting in for capacity enhancement as well as setting up new rd, definitely there is a lot of potential for the growth to be upwards of 20%. But having said that, all the products have to go through the regulatory approval. So we have to be a bit conservative on the regulatory side. We are very confident that 20% growth is something that, you know, we’ll be able to achieve. And if all the products as per the management’s expectation are able to achieve their full potential, the growth can be even higher than that.
Dheeraj Kumar Reddy Dosakayala
That’s helpful. Thanks. Thanks a lot.
operator
Thank you. The next question is from the line of Aditya Pal from MSA Capital Partners. Please go ahead.
Adityapal Singh Jaggi
Hello. Am I audible?
operator
Yes, you are audible. Please go ahead.
Adityapal Singh Jaggi
Yeah, thank you so much for the opportunity. Just had a couple of questions. One was on ats. So what I was looking at is that the market size of ETH is. Close to 600 tons. That is India imports close to 600 tons of TTS8. And there’s no. There’s no player, other assignable player other than Superya from what I’ve understood. So is it fair to say that we can capture this large market quite easily?
Dr. Saloni Satish Wagh
Yes, definitely. We are one of the largest players. And in terms of the capacity also that we have set up plus the level of backward integration that we have for this product, we are setting up ourselves for becoming one of leaders in this product.
Dr. Satish Waman Wagh
But I have something to say. No, no, just listen. I have something to say. We are not at all interested for taking the entire share. There should be a healthy competency. There should be. Because what happens now? Everybody is not looking for a quality and looking for a continuous supply. People are taking us for a ride for price. So wherever the price comes with. So we have decided, at least as a chairman, I have decided that we will have only 250 to 300 tons where we will cater the customers who are choosy to have a quality material from the us, FDA and EU plant. That’s my decision. And that competition.
Let them continue with that. We don’t have any problem.
Adityapal Singh Jaggi
No, no. This actually makes a lot of sense. Really makes a lot of sense. Because you’re targeting that correct profit pool.
Dr. Saloni Satish Wagh
Correct?
Dr. Satish Waman Wagh
Yes.
Adityapal Singh Jaggi
So. So. And Saloni, is it fair to say this 250 to 300 tons can easily be realized in FY27 and it doesn’t from Q4 FY26 to Q4 FY27. Can we see that the entire 300 tons of revenue to be realized in the books?
Dr. Saloni Satish Wagh
Yes, I think with the current order book that we have and the strategy like our chairman explained claimed this 250 to 300 ton we’ll be able to fully get in FY27.
Adityapal Singh Jaggi
Understood this last point when when you were talking of thousand crores for the last couple of quarters is the ATS 8 an upside surprise for us? Have we modeled. Have you modeled that into our.
Dr. Saloni Satish Wagh
So some part of it is already modeled into our thousand crore because we had considered some part of the revenue coming in from new products. Of course the full impact of it. If the product volumes were to be at that 250300 ton then that full impact of it is not modeled in our thousand crores but some part of it. Yes, we are already considered.
Adityapal Singh Jaggi
So it is fair for me to say that thousand crores plus plus the optionality that we have with Ambanath coming in plus atsa that is something that can surprise us on the upside.
Dr. Saloni Satish Wagh
So what I would say is that you know in the thousand crore, like I said before also we had built in some part of CMO and new products. So some part of Ambarnath as well as some part of the new products was already considered in that thousand crores. Looking at the large potential of the new product what we have launched in this financial year, yes there is always a possibility of an upside. But going back to regulatory approvals, as soon as the regulatory approvals are in our hand, we will be able to confidently guide on how significant that upside could be.
Adityapal Singh Jaggi
Understood. Understood. Now this makes a lot of sense. If I may just ask one last question. This is a bit on the strategy aspect. So we are very strong in chemistry. Are we thinking of talking to larger, larger players as in larger pharma players outside who are developing the drugs, but more in terms of getting into either KSM supply chain or Advanced Intermediate supply chain and not directly trying to jump to an API supply chain because.
Dr. Saloni Satish Wagh
We are actually after the DSM Fed manage partnership. It has sort of opened up doors for us to talk to a lot of the larger companies. Because if you have established confidence in terms of quality and regulatory with one large pharma, it will automatically open up doors and opportunities with the other company. So definitely we are talking to a lot of large companies where we want to be in a partnership with them for either Advanced Intermediate or for the API supply. Hopefully one or two we should be. Able to announce soon
Adityapal Singh Jaggi
Understood? Understood. Thank you so much and wishing you and the team all the very best.
Dr. Saloni Satish Wagh
Thank you so much.
operator
Thank you. Ladies and gentlemen, due to paucity of time, we’ll take that as the last question for today. On behalf of Supriya Life Science limited that concludes this conference. Thank you all for joining us today. And you may now disconnect your lines.