Supriya Lifescience Ltd (NSE: SUPRIYA) Q4 2025 Earnings Call dated May. 28, 2025
Corporate Participants:
Unidentified Speaker
Satish Waman Wagh — Whole Time Director & Executive Chairman
Krishna Raghunathan — Chief Financial Officer
Saloni Satish Wagh — Managing Director
Analysts:
Unidentified Participant
Runjhun Jain — Analyst
Krisha Kansara — Analyst
Nirali Shah — Analyst
Raghav Agarwal — Analyst
Neha Kharodia — Analyst
Srihari Chintalapudy — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Supriya Life Sciences Limited Q4FY25 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 the conference call please signal an operator by pressing start and zero on your touchtone phone. Please note that this conference has been recorded.
I now hand the conference over to Ms. Runjun Jain from Eye. Thank you. And over to you ma’ am.
Runjhun Jain — Analyst
Thank you, Anishka. Good morning everyone. On behalf of Superior Lifetime Limited I extend a warm welcome to all participants for the Q4 and FY25 financial results discussion call today. On the call we have Dr. Satish Wag executive chairman and full time director. Dr. Saloni Wag managing director and Mr. Krishna Raghunath chief and Chavakrikar. 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, opinions 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 call to Mr. Satish for his opening remarks. Over to you sir.
Satish Waman Wagh — Whole Time Director & Executive Chairman
Good morning and a warm welcome to all participants. Thank you for joining us today to discuss the Q4 and financial year Q5 results of Supriya Life Science Limited. Joining me today are Dr. Saloni WAG Managing Director Mr. Krishna Raghunathan, Chief Financial Officer and our investor relations team from Aung Sanyan. I hope you have had opportunity to review our financial results and investor presentation which are available on the stock exchanges and our company website. Financial year 25 has been a landmark year for us at Supriya Life Science as we continue to deliver on our strategic roadmap and maintained strong execution across our operations.
It was our strongest year yet at Supriya Life Science as we delivered our highest ever revenue and EBITDA performance. We closed the year with revenue of rupees 697 crores up 22% year on year aligned with our guidance of 20% plus RuPaul. Our EBITDA for FY25 stood at rupees 261 crores with a robust margin of 37.4%. This performance was driven by three key pillars. Capacity enhancement by utilization of Module E we are successfully transitioning into a regulated markets driving Strong results. Despite modest volume growth, penetration in newer geographics and adding our customer base, our export business continues to be a major growth engine accounting for 85% of FY25 revenue map revenue up for 79% last year.
Notably, LATAM’s contribution surged into 22% from 11% in FY24. We are also gaining traction in regulated markets like Europe and Brazil fueled by new product registrations. Going forward, we expect Europe and Latam to drive growth. Additionally, we have launched a few new products in anesthetic category which will scale up. Our strategy remains clear drive growth through increased registration and deeper market penetration. Our key differentiator backward integration has been substantial progress reaching 72% in financial year 25 from 68 to FY24. This strategic enhancement directly improves our control over the vital inputs and optimize our cost structure.
We are pleased with the strong performance in our core therapies and the steady progress in other case segments which together have strengthened our overall portfolio. What is especially encouraging is that none of our products saw a decline reflecting strong execution across the business. As you are aware, we signed a 10 year partnership with DSM and I am pleased to share that it is on track. Commercial supplies have started and we are expecting revenue contribution this year. We are pleased to share that we have received a Certificate of Suitability CEP for one of our K molecules feliciating deeper access into a European market.
Additionally, our Ambana site has started validation campaigns and will commence production of liquid anesthetics and oral solids, a significant milestone of our CDMO strategy. Our new model E block has expanded capacity by 500 KL taking our total to over 1,020 care with full utilization expected by financial year 27. We now operate two R&D centers, LOTI focused on life cycle management and generic API and Ambernath which drives innovation in finished formulations and NCES. Together today support our forward looking product strategy across APIs and CDMO services. Looking ahead, we reaffirm our guidance of 20% annual revenue growth and sustained EBITDA margins in the 33 to 35% range.
Our mid term ambition to reach rupees 1000 crore in revenue by financial year 27 is backed by a robust pipeline, three to four new product launches in financial year 26 and growth traction across therapeutic areas including anesthetics, anti diabetics, anti anxiety, vitamins and adhd. While the US has announced new tariff measures, details are yet to be finalized. For now we are adopting a wait and watch approach. The US currently contributes a relatively small share to our overall business and we remain focused on strengthening our presence in other high potential regulator markets. Our competitive edge lies in deep backward integration, regulatory strength across key markets and a strong portfolio of differentiated products. We are confident in our long term strategy and remain focused on creating a substantial value for all the stakeholders.
With that I Now invite our CFO Mr. Krishna Raghunathan to take you through the detailed financial performance of Q4 and FY25.
Krishna Raghunathan — Chief Financial Officer
Thank you sir. Good morning everyone. Let me take you all through the operational highlights of the quarter and the full year following which we will open the floor for question and answers. The company reported revenue from operations of rupees 184 crores in Q4FY25 as against rupees 158 crores in Q4FY24 registering a growth of 16% year on year. EBITDA in Q4FY25 stood at rupees 68 crores as against rupees 56 crores in Q4FY24 a growth of 22% year on year and EBITDA margin stood at 37% for Q4FY25 improved 162 bids year on year pats to get Rs.
50 crores in Q4FY25 adds against rupees 37 crores in Q4FY24. Batch margins stood at 27% moving to full year performance. Revenue from Operations stood at Rs. 696 crores in FY25 adds against Rs. 570 crores in FY24 reporting a growth of 22%. EBITDA in FY25 stood at rupees 261 crores as against rupees 173 crores in FY24 an exceptional growth of 51% year on year while EBITDA margin stood at 37% for FY25 as against 30% in FY24 improved 712 bips year on year. Back stood at rupees 188 crores in FY25 as against rupees 119 crores in FY24.
BAC margin stood at 27% in FY25. Our capex for FY25 stood at rupees 162 crores. Going forward we expect our capex to close around rupees 75 to 80 crores for FY26 primarily directed towards maintenance capex and certain small projects like Revo Block and other requirements in formulations plan. Our working capital days increased from 124 days to 158 days on account of increase in inventory and receivables due to increase in certain batch sizes in E block and increase in receivables is due to increased business on borrowings. We would like to report that for the last six months we have not replaced 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 be again 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 Rachna from simpl. Please proceed.
Unidentified Participant
Hello? Hello? Hello? Yes? Am I audible?
Saloni Satish Wagh
Yes, you are audible.
Unidentified Participant
Yes. I have three questions. My first question is that we had. Launched a basket of new products across various therapies. So how are these products scaled during FY25 and how has their contributions been to overall revenues? And do you see any opportunities further to scale these new products in the medium to long term?
Saloni Satish Wagh
So in FY25 we have actually launched only one new product coming from the anesthetic therapeutic category. And this launch has happened actually in quarter four. So right now we have not seen any meaningful contribution from this particular product because it is typically for any product to complete the registration in regulated market, it takes about 12 to 18 months.
But it’s a very large product category for us and we are very hopeful that in the next financial year we can see some meaningful contribution to revenues. In the next financial year, we are expecting to launch three new products. The first would be launched somewhere end of quarter two and then quarter three, quarter four also we are expecting to launch new products. But meaningful contribution of any new product. Launches will only happen 12 to 18 months from the commercial launch.
Unidentified Participant
Okay. I was wanting to understand about the. Product we had launched in FY23. So have those products seen any growth?
Saloni Satish Wagh
So in FY23 as such, we have not launched any new product or we have not added any new product in our portfolio. In FY2 entity, the main focus of the company was penetration into more regulated market. So a lot of our USBMs CEP approvals have come in that year. So the major contributors to FY23 revenue has come and in fact FY24 revenue. Also has come from the existing set. Of products which have gotten better traction in regulated markets.
Unidentified Participant
Okay, my second question is that growth in the vitamins therapy appears to be flat in FY25. Given our exclusive contract with. Hello. Given our exclusive contract with DSM for vitamin products, how much has this partnership contributed to revenues in this segment? And has it helped drive any scale the DSM project despite the flat overall growth in the vitamin.
Saloni Satish Wagh
If I look at the growth in. The vitamin segment, actually there has been a good growth in terms of revenue. In terms of percentage you are not able to see much because obviously our base this year is much higher. But in terms of absolute sales value, there is definitely a growth in the vitamin segment. In the last financial year.
BSM contract has not contributed in a. Big way because we have just completed the validations and we have started supplying to their customer base which is global. And right now the customers are actually getting our product qualified. But in the next financial year definitely. We are expecting 30, 35 crores of revenue coming in from the DSM contract. So actual meaningful scale up of DSM you will see in the next financial year.
Unidentified Participant
Okay, and one last question. We have seen strong growth in the lac market. Is this primarily driven by APIs in the anesthetic and therapies beyond? Do you see growing demand or scaling opportunities in other therapeutic areas within the LAC region?
Saloni Satish Wagh
Correct. Yes. In fact not just anesthetic, but we have seen good growth across different therapies. Our analgesic therapy has grown really well. Anti asthmatic has grown well. Some of the newer therapies like anti gout and anti hypertensive which were not contributing that much to the revenue, they have also scaled up really well. So overall across all markets, may it be semi regulated, regulated emerging markets. We have seen very good growth happening. Across all the countries.
Unidentified Participant
Okay. Okay. That’s it. Thank you.
Saloni Satish Wagh
Thank you.
operator
Thank you. The next question is from the line of Trapesh Satya from Shri Rama Managers pms. Please proceed.
Unidentified Participant
Thank you. Thank you for the opportunity and congratulations on very good set of results. I am little bit new to the company so my questions are a little bit different. So first, first question is keep in mind hydrochloride is a large product for us and I think we have a 30, 40% market share in the world. That is my understanding.
So if you can give some idea about why, how did we achieve such dominant market share? Is there like a new competitor coming and how has the realization been over maybe let’s say last 10 years if you can. Because that is such a big part of our business. I just want to understand that first.
Saloni Satish Wagh
So we do not disclose any product specific details. So I will not be able to. Comment on any one particular product. However, what I would like to highlight is in any molecule, whenever we get a leadership position, it is actually a combination of setting up the largest capacity for that product, fully backward integrating that product and then getting all the regulatory approvals across the globe for that product. So once you have done all these three things, then you are in a. Position to get that leadership for certain molecules. And that is the same strategy that we use in our portfolio as well. That’s the only thing I’ll be able to say. Product specific things. Unfortunately I’ll not be able to talk.
Unidentified Participant
But maybe just at a broad level. Do you see competitive landscape in that product staying same or our position improving or our position declining? If you can give some qualitative color around that.
Saloni Satish Wagh
So like I mentioned, you know, there are three aspects for getting leadership position. One is building the largest capacity which happens over a few years. It cannot happen overnight. We have some of the largest capacities for our top products globally. In the backward integrated model. We have backward integrated these products up. To the KSM level which none of the other companies globally have done.
And then the regulatory approval which take minimum two to three years in any market. So today if you go to apply a CEP or a usbms it’s going to take you minimum two to three years to get it. So all these three are very high. It will take them minimum three to four years to scale up that product. To the level at which we are today. So I am not seeing any immediate, you know, competition.
Satish Waman Wagh
See this competition word only industrial answer the competition what comes only from India. They keep on talking about competitions. Competitions come everywhere. But you must understand any API. The supreme model is 86% exports in export. Nobody worries about the price. Today is the sustainability and a regularity and a quality supply that is very, very important. That’s why Supriya share in exports is more and locally because of competition we take always listen. Share. That’s the word. I hope you understand.
Unidentified Participant
Yeah, yeah, that is. Thank you. Thank you for that very elaborate answer. Very helpful. This just one final clarification on that. At what rate that market is growing?
Saloni Satish Wagh
I did not understand. Can you repeat the last word that you said?
Unidentified Participant
So this product at what rate the end. End industry is growing.
Saloni Satish Wagh
So that we cannot disclose any product specific information, even.
Satish Waman Wagh
One gram Also all over the world we will see that we capture that market. We will not allow to come anybody nearby us also. That’s our fundamentals.
Unidentified Participant
Okay, okay, that’s, that’s very helpful. So the second, second question is on slide 32. You have said that there is this one CMO project with a leading European company. And we expect 60 crore revenue from that project in FY27. So this is, so this is outside of DSM vitamin, right? Which is 30, 35 crore project. So these are two different.
Saloni Satish Wagh
No. So it is the same project. So the DSM said minute contract that we have signed is for vitamins. Apply exclusively to them for 10 years. And I see this contract will generate a revenue of about 60, 70 crores. But it will be a gradual scale up because this is mainly for regulated. Markets like Europe, US and Japan. So as and when we keep on getting the approvals, the volume will grow. This year because we have already received the cep, we are hoping to tap the European market. So that is why we have said that we are going to sell about. 30, 40 tonnes which will be around 35 crores of revenue. But it is the same contract.
Unidentified Participant
Okay, okay, clear, clear. We launched one product in Q4 and we’re looking to launch three new products in FY26. So for these all four products, can you give some color about around two things? What is the end market size for each of these products? Is it like a small or is it like you know, fifty hundred million dollars? Like that. And is there, are there like, are you like a first manufacturer from India or some idea about the competitive positioning that there are only two, three manufacturers in India, like some qualitative color around these four products will be very helpful.
Saloni Satish Wagh
So the four new products which we are launching first, we have already launched in quarter four for that particular product. The global market size is about $300 million. And the three new products, what we are launching in the next financial year, one of them which is coming in the ADHD category, it’s about 90 million. Contrast media is about 500 million. And then we have some cardiovascular drug. Which is about $100 million. So if I put together all this. We are closer to $1 billion in terms of API market size.
We are targeting these molecules because globally today for these particular molecules the supply dependence is there only on one manufacturer. Predominantly for most of these it is from China. And as you know the global trend people are looking for China plus one manufacturer. I think we can benefit a lot in these molecules. We have been working on them for the past two, three years. We have really Focused on end to end backward integration.
So we are very confident that globally, other than China, we will be one of the first manufacturers to offer the products to the regulated market customers, not only with full backward integration, but complete regulatory support. So we are very confident that when these products launch, they will significantly contribute to the revenue. And some of these actually have the potential of becoming the top product for the company in the next two to three years.
Unidentified Participant
That’s. That’s very helpful. And then. Are we doing any work? Yeah. Okay.
operator
Yeah. I would request you to go back to the queue as there are several.
Unidentified Participant
Yes, sir. I’ll come back in the queue.
operator
Yes, thank you. Before I take the next question, I would like to remind participants, in order to ensure that the management is able to address questions from all the participants in the conference, please limit your questions to two per participant.
The next question is from the line of Krishakansara from Molecule Ventures. Please proceed.
Krisha Kansara
Hello.
Saloni Satish Wagh
Hello.
Krisha Kansara
Yeah, thank you for giving me this opportunity. My question is on contract media. You had mentioned in the previous call that we are in active discussions with certain global players for supplying APIs to them. So have we zeroed down on any of these discussions? Also you mentioned that this is a 500 million opportunity for us, but I wanted to understand the dynamics of this space.
Do we have the required expertise for the alternate process to which you are going to avoid the iodine usage? So if you can briefly tell us about how are things shaping up in the contrast media space. That is my first question.
Saloni Satish Wagh
In terms of technology, yes, we do have an alternative technology and we are very confident we have fully backward integrated this product. So as such we do not have. Any dependence on advanced intermediate from any external parties. So we are very confident when it comes to the technology.
And even because we have a fully backward integrated product, in terms of cost of the product also we have a. Fair advantage as compared to any other player. We are discussing this with a lot of global companies. But because this product is set to launch end of quarter two, the discussions. Are at a very initial stage. So as soon as there is some progress on this, maybe in the upcoming. Quarters, we would be making some announcements.
But we have a very good chance because like I said, the manufacturing is highly dependent on one or two players. There is a need for another source. In the market, our technology. We are very confident and with the cost of the technology that we have, definitely we see that we will have a very strong competitive advantage.
operator
Ms. Krisha, I would request you to unmute yourself and speak.
Krisha Kansara
Hello. Yeah, sorry, I was asking that. So we can expect a contribution from this contract media space only after two, three quarters. Let’s see. Correct.
Saloni Satish Wagh
It would be even more because we. Are launching this in quarter two and in next financial year. So from there at least 3, 4/4 it will take. Because as you are aware, regulatory and regulated markets are very large. For you know, this particular therapy Europe, US markets are enough. So registrations typically take between 12 to 18 months. So for them to fully contribute for any API, in fact from the time we launch it, for it to contribute. Meaningfully to the top line it takes minimum two years.
Krisha Kansara
Okay, okay, understood. My second question is on the CDMO side. So if you can help us understand the total number of CMO and CDMO projects that we are working on as of now. And if you can break it up into two parts, let’s say one being the number of projects which are in commercial space and the other number of projects being in let’s say early stage development. Also one related question to this is do we still stick to our guidance of achieving close to 200 crores of top line from CDMO segment by FY27? And did we kind of report any revenue from CDMO in this particular quarter?
Saloni Satish Wagh
No, so far we have not. I mean there is a revenue contribution. From the DSM agreement but that is very, very small. It’s not substantial. As of now we are working on five CMO projects out of which three are, you know, in the commercial stage. DSM has already moved to commercial wherein we have started supplying volume to them. And we have two other contracts wherein. The validations are completed and commercial contracts are under negotiation. Other than these, in some of the new launches what we are doing mainly the anesthetic products, contrast media and cardiovascular products.
We do have two CMO opportunities which are still under discussion. Once they move into some sort of a concrete agreement, we will be announcing them. We still maintain our guidance of 200 crore contribution to 1000 crore top line. But as and when Ambarnath plant scales up, which is again CMO but in the formulation space, there could be some. Upside to that number. But once Ambarnath facility has gone into commercial production, we would like to give an update on those numbers.
Krisha Kansara
Right. So the Ambarnath formulation site we were supposed to start in this quarter. So you had mentioned in this PPT that it will take two more quarters to commission the site. So what is causing the delay for that?
Saloni Satish Wagh
So there was just some minor delay in the civil construction of the site. So that was the only delay we have already started. I Mean the commissioning part of it is already started. I think in the next two quarters we will start triggering the regulatory approval process for that particular site. We have started the validation campaign but unless and until we don’t get the regulatory clearance on the site, we will not be in a position to start the commercial supplies to the customer. So validation, commissioning, progress, commercial contribution and. The commercial scale up batches and campaigns will start maybe in one or two quarters.
Krisha Kansara
Right. Okay, thank you. I’ll join that question. Thank you.
operator
Thank you. The next question is from the line of Nirali Shah from Ashika Institutional Equities. Please proceed.
Nirali Shah
Good morning. Congratulations on this wonderful set of numbers. Just wanted to follow up on the previous participants question regarding the Amarnath finish formulations. Just need a clarity. Is there any contribution that we are getting from the Finnish formulations in the fourth quarter? Yes, yes.
Saloni Satish Wagh
No there is no contribution because like. I mentioned before also we have not yet started any commercial production from life sign. We are just in the phase of. Validation campaign for, you know, creating the. Dozier stability on the site. So the more commercial production.
Nirali Shah
When do we expect commercial production?
Saloni Satish Wagh
We are expecting some commercial production to start by quarter three of this financial. Of the next financial year
Nirali Shah
and then. Any meaningful contribution we would be expecting a year to show.
Saloni Satish Wagh
So we are not expecting any meaningful contribution but some small contribution in revenue we are expecting from the Ambarna side maybe in quarter four. This will mainly come from the non reg market wherein the regulatory approvals are not required. There’s some small contribution you can expect. But nothing big or in a meaningful way. I think the Ambarna side will meaningfully contribute in the FY27 only.
Nirali Shah
And just one more so you had earlier guided for an EBITDA margin range of 34 to 36% for FY25 and now we have delivered a strong 37.4 which is clearly ahead of the range. In the opening commentary Satish sir mentioned that for FY26 we are guiding for a range of 33 to 35. So just trying to understand is this more on a conservative starting point or should we not be thinking it off like a 37% as a new base?
Saloni Satish Wagh
So what is happening in FY26 is that the newer products are also getting. Launched and typically whenever we launch a new product the initial scale up of these products happens in the semi regulated market where the average selling price for the product is not high as regulated market. So we are anticipating some compression in percentage margin. We are very confident that in terms of the absolute EBITDA value or the pat value, you will see a good growth. But if I were to put it in terms of percentage, we are expecting that 33 to 35% which our chairman. Has guided plus Ambarnath will start generating revenue in this financial year.
Again the same thing. Until and unless we don’t get the. Regulatory approval for Ambarnath site, we are. Unable to operate in the premium markets like Europe us. So in that sense, when we are operating more in the semi regulated or the non regulated market, the margin profile on those markets is not as high. As the regulated one. So overall that’s why the slight compression in terms of percentage. But I repeat that in terms of the absolute EBITDA value or the pat. Value, you will definitely see a good growth.
Nirali Shah
Thank you.
operator
Thank you. The next question is from the line of Raghav Agarwal from Vritti Capital. Please proceed.
Raghav Agarwal
Hello. Hi. Good morning ma’ am. And good morning sir. Congratulations on the good set of numbers. I just wanted to ask you about the progress that we are making in the plasma nutrition project and oral cancer detection kits that we’ve been talking about. Can you just give us some ideas to what is happening in that space?
Saloni Satish Wagh
So the plasma nutrition, we have made progress. Last quarter we got the FSAI certification for the optimized whey protein which was. A starting point for us going into the market with the product. After that we are in discussion with one of the largest distributors in the country who is basically a large stockist for whey protein. So we are in discussion with them. We are very close to signing our first contract with them. The volume this year would not be very high. We are expecting somewhere to the 2, not 100 metrics. Because this is a completely new product for the Indian market. Nobody has launched optimized whey protein before this.
So for them also to formulate the. Product and then put it out into the market and see how the customers are reacting will take about six to eight months. So it is on track. We are expecting some commercial revenue from whey protein in the next financial year. But it will not be very high because the volume like I indicated is about 100 tons for next year. But if the market acceptability of the product is good, it can really scale. Up in the next two to three years. And we are targeting at least in the next three years it should touch about thousand or 1500 metrics.
Raghav Agarwal
Okay, ma’ am, Also can you talk a little bit about the oral detection kit that you were making with the Cullen University? Is there any progress on that?
Saloni Satish Wagh
So on the cancer detection kit, I think the first focus of the company was to get it, you know, patented across different geographies. So last six, seven months we have been working closely with the innovator and we have already gotten the patent for neighboring countries like Malaysia, Philippines, Korea. Because in these countries we have large. Partners who are interested, you know, in developing the product and scaling the product in those markets. So I think a large part of the focus was getting the patents done for these markets in terms of commercial contribution from the oral cancer detection kit. Like I’ve mentioned before, also it’s a completely new product so it will go through that phase of BCGI approval and all of that. So I think it will take at least three years for us to see any kind of commercial revenue happening from this.
Raghav Agarwal
Sure. Right. And then just one last question is regarding the city contribution around the space. Like we always focus more on the regulated side and this year if I’ve seen the presentation, it says that the North American, the contribution from the North America is a bit low. So are we looking forward to gaining more share in that space, that region and how are we going to diversify more around that region?
Saloni Satish Wagh
Historically also our market share from North America has always been less than 5%. Our major market for the product portfolio that we have always has been Europe and Latin American markets. The slight dip in sales, what you see in North American markets is just basically a rerouting of some of the business to the domestic market. Because we used to supply some anti allergic and decongestant products to a CMO in the us. Now their CMO base has actually shifted to India. So that volume from US has gone to the Indian market. So that is the slight dip that you are seeing in terms of sales in North American market.
Some of the new product launches, what we are doing in the anesthetic space, in the cardiovascular ADHD space, they have a good market in the US in the short term, I think for the next one or two years, I don’t see US contribution growing very significantly. I think it would still be somewhere in the tune of 6, 7%. But after that, once these products have gotten approval in the US market, we can expect North America, let’s say in the next three years to go up to 10%. But for us overall perspective, I think. Europe Latam would be the larger market.
Raghav Agarwal
So I think we’ll be able to maintain the share in Latin America and Europe like we have performed this year, right?
Saloni Satish Wagh
Yes, absolutely. If not, we expect the share to grow because some of the newer Products what we are launching will gain market share plus even for some of the. Existing products we are still gaining market share. So other than our top four, five products we already have a set of six, seven products where we have recently got CEPS and USDMs. So those products will also now start scaling up in these markets.
Raghav Agarwal
Thank you ma’ am. Thank you for answering my questions.
operator
Thank you. The next question is from the line of Dr. Neha Kharodia from Abacus Asset Manager. Please proceed.
Neha Kharodia
Yeah hi, good morning everyone and thank you for the opportunity. So my, I have two questions. First is regarding the Satish S opening remark wherein he mentioned that volume has been modest for the year and while regulated market deeper penetration has led to still better growth in terms of sales so just wanted more elaboration and more clarity on like how have we grown in terms of volume on an average and what is the realization that we.
Saloni Satish Wagh
So by modest growth I think what he meant is that last year we have produced a total of about eight. I mean the year before that we had produced about 841 tonnes and last. Year in terms of tonnage we have. Closed in at about 880 tonnes so. In terms of volume growth for the. Product there’s been about 40, 50 metric tonnes if I see however, because some of these products and some of our top products have seen significant scale up in regulated markets it has translated to. A higher revenue and margin generation. I think that is what the comment meant.
Neha Kharodia
Understood. And so going forward like we expect more of volume led growth or we expect further as in with the newer products I think the volume growth should be better. So just from your end like how should we look at that.
Saloni Satish Wagh
Going forward. You can expect a better volume growth. Because also what has happened is we. Have partially only utilized module E in quarter four and that module E is a very large capacity so once that. Module E goes into full capacity utilization. Which we expect till FY27 definitely the volume growth would be much higher plus some of the newer products what we are launching like I mentioned before also the global volume of these products is very large So I think in the. Next two years you will see more. On the volume growth.
Neha Kharodia
Understood. And also regarding our business trends so if we talk about let’s say the change in our business trends over the years so how where we were in last as in three years back and where we are now and going forward, how are they going to change? If we can maybe talk about that.
Saloni Satish Wagh
I think two, three areas where we have shown significant improvement and real strength. One is Definitely the change in the. Geography mix and the product mix. We have been always telling all the shareholders that we are constantly working on how we can make our portfolio more robust and how we can increase other product penetration into regulated market. I think that is very visibly seen in the numbers this year. Also if you look at my top three therapies, earlier it was antihistamine anesthetic and anti asthmatic. But for this year we have seen very good growth happening in analgesic therapy. We have of course seen good growth happening in anti asthmatic and anesthetic. But some of the other therapies like anti gout, anti hypertensive vitamins, these therapies have also started contributing very well to the resume.
So I think this is the first biggest trend that we have seen seen. That any kind of portfolio concentration, product concentration, geographic concentration, we are now seeing. It becoming more diverse even at the region level. If you see Europe is one of our largest contributor. But Latam has grown from almost 11% to 20%. Even in Southeast Asia we have seen. Good growth from 11% to 16%. So definitely newer geographies are also coming in. Backward integration is one other area which we have always focused and we have seen significant improvement. So I think these are some of. The key areas which has really helped. Us in de risking our business model.
Neha Kharodia
Understood, thanks for that explanation. And also just one more question. So regarding working capital days. So this year, because we are looking at the commercialization of the Ambarnath facility. So should we expect some reduction in the inventory days or how should we look at that? Both inventory.
Satish Waman Wagh
Dr. Neha, what will happen is that in modules, since the batches are becoming larger, we might have to increase a bit of inventory. And with respect to receivables. Yes, we have been pushing across all the marketing team members. There could be some reduction possible on the receivable side. But I think inventory basis, I think somewhere around 170 or something odd which is coming in. I think such is a good number. I don’t think that should be a problem for us. Inventory can be managed but receivables we will try and push and reduce the receivable.
Neha Kharodia
Understood. So on a blended basis, should we expect that working capital days should remain in the similar range?
Satish Waman Wagh
Around 150 to 160 days should be the number we should be looking at.
Neha Kharodia
Thank you so much.
operator
Thank you. The next question is from the line of Abhijit from PI Asset Management. Please proceed.
Unidentified Participant
Thanks for the opportunity. Am I audible?
Satish Waman Wagh
Yeah, go ahead.
Unidentified Participant
Yeah, just three basic questions. So what Was the reason for improvement. In gross margin this quarter and is this sustainable going forward?
Krishna Raghunathan
We don’t guide on gross margins, sir. We have only talked about ebitda. See EBITDA I think we have already spoken about in the Chairman’s speech. I think he has already given what sort of a futuristic number we should be looking at.
Unidentified Participant
Understood. The other thing is Q4 has historically been the strongest quarter but this was not the case this time. Can you please share the reason for the same and the trajectory going forward?
Saloni Satish Wagh
Previously, a large contributor to our revenue was our antihistamine therapeutic category which had. Some sort of a seasonality in terms of sales of the product. However, like I mentioned before, we have been trying to make our portfolio more robust and if you see this year analystic anesthetic and anti asthmatic contribution is fairly large to our resume. So that kind of seasonal impact what we used to have before, I don’t think you will see that moving forward. So I think moving forward, almost all the quarters you will see at a. Normalized level there will not be any one particular quarter where the sales would be very high.
Unidentified Participant
Understood. And the last question is. So. So what is the tax rate expected. In the next fiscal. There has been a decline in tax rate in the last few quarters. So if you can shed some more on this.
Saloni Satish Wagh
Sorry, can you repeat your question?
Unidentified Participant
Yeah, it is regarding the tax rate. So what is the tax rate expected in the next fiscal?
Krishna Raghunathan
Tax rate will be around say 25.17%. Correcting that would be around the same number.
Unidentified Participant
Around 25%, right? Yeah. Thank you.
operator
Thank you. The next question is from the line of Ashish Soni from Family Office. Please proceed.
Unidentified Participant
In terms of China plus one strategy, I think two questions I want to understand. I think your strategy is working well. If I understand the South American market revenue share or the revenue growth, what is. I think you guys mentioned that generally what you are targeting is typically a full or China plus one sort of supplier. So what’s your ambition to get? Suppose they get a revenue share of like 100 rupees. So typically based on your thing, what’s your internal ambition to get to like 50 rupees? And what is actually happening on the ground? I just want to understand because your strategy feels. But on the ground, what is happening? What’s your ambition on that regard?
Saloni Satish Wagh
So most of the companies who are looking at China plus one strategy, I think for them it is not about the price per se, like our chairman mentioned. Most of them want to move away from there mainly because of the Regulatory quality and the sustainability aspect. So we don’t have any strategy like that that if we are entering into. A product where there is a high Chinese dependent, when we enter the market. We will offer a product which is 10% or 20% lower than what China is offering today.
Our main intention in these products is to provide the customer with a more sustainable partner who has all the regulatory approval. Because that is one area where there is a lot of lacuna in the Chinese manufacturers. So we have a US FDA approved site, we have a EU approved side, we have worked in regulated markets for more than 20 years. So we have a very good legacy when it comes to quality and sustainability. Even the.
Unidentified Participant
Follow up question.
Saloni Satish Wagh
Yeah,
Unidentified Participant
my question is suppose China was supplying for a particular product and I was supplying for 100 rupees, right? So with all this quality factor is okay, but how, how much share are you able to gather right out of the hundred China was supplying for a particular product? Like is it 20, is it 50? I’m just trying to understand because we hear a lot of these things. So what is actually happening on the ground is what.
Saloni Satish Wagh
On immediate basis, let’s say when we launch a new product within 12 to 18 months when the first scale up happens, we expect to. Gain at least 10% of the market share. We can go up to almost 20, 30% of the market share, but that will be gradual. In a total least two to three years time it is not possible immediately to get upwards of 50% market share in any product because regulated customers take their own time. So immediate short term target Is to gain 10% of the global market share. And then eventually ramp it up to 30, 40%.
Unidentified Participant
But do you think practically it’s possible to get to like 50% in five years sort of thing for a particular product?
Saloni Satish Wagh
Yes, I think in five years it is very much possible. And that kind of a trend we have seen in our existing portfolio also in some of the products that we manufacture. Our key products, the initial suppliers were Chinese manufacturers but then we have built up large capacities. We did backward integration, we did the. Registration and today we have become in. Fact the first suppliers for those products. So it is very much possible. It takes time because registrations take time but it is possible to get the leadership position in some of these molecules.
Unidentified Participant
And regarding CDMO CMO space, what’s our strategy compared to an Indian competitor? Because we keep on hearing that a lot of projects are coming. China plus one strategy. A lot of companies are what? Because somehow I see compared to other Indian players, your CDN at Least number of projects. What somebody asked, it’s not growing. So what is stopping us from aggressively going up in that space?
Saloni Satish Wagh
So we are going aggressively for those CMO CDMO projects. But you have to understand that any. CMO CDMO project takes two to three years to commercialize because we do not. Focus on domestic market more. If you see our revenue today also almost 85% is export. So all of the CMO opportunities, what we are working are in the regulated market. Space and Latin America are the two main geographies where we are having multiple CMO CDMO discussions. We are aggressively working on that. But for it to translate into commercial revenue, it is going to take minimum two to three years. And we are fairly new in the CMO space. We started doing CMO just about two years back. So maybe FY27, FY28. You can see meaningful contribution from these opportunities.
Unidentified Participant
And do you think CDMO space can be like 50% of the revenue in five years down the line sort of thing?
Saloni Satish Wagh
No, I don’t think 50% of revenue will come from CMO. I think 30, 35%. It is possible in the next four, five years. But because along with CMO CDMO we also launch every year our own new. Products in our portfolio. I think that will also grow. So I don’t see 50 coming in. In the next at least four years.
Unidentified Participant
Okay, thanks and all the way.
operator
Thank you. The next question is from the line of Abhishek from Padmaj Investments. Please proceed.
Unidentified Participant
Yeah, Am I audible?
Saloni Satish Wagh
Yes, yes. Yes, you are audible.
Unidentified Participant
Yeah. So my question is on. I checked the DMF database. Like why are there no new filings for DMS in the year 2025? That’s my question. And question two is what will drive the growth in FY26? Because for FY27 in future I think it is good. But for FY26 like Amber Map is also Amber Map facilities also post work. So can you explain in payload in summary?
Saloni Satish Wagh
I’m sorry, actually your voice is. I’m not able to understand your question clearly.
Unidentified Participant
Yeah,
Saloni Satish Wagh
it’s very like.
Unidentified Participant
Yes. What will drive the growth in FY26 for the future? It is very clear for the FY26 what is the constraint?
Saloni Satish Wagh
Okay, so the major growth drivers for FY26 would be the scale up of some of our existing products in regulated markets, some contribution coming in from the CMO CDMO opportunities that we have and. Then the new products, what we are. Launching, especially the anesthetic product which we launched last year in quarter four. Some contribution from that. So in a nutshell, scale up of. Existing products in more regulated markets. New products contributing to revenue and cmo, cdmox.
Unidentified Participant
Okay, my second question is on. I checked it in our annual report that you are also working on these peptides. Can you talk about that?
Saloni Satish Wagh
Yes, we are working on this for our finished formulation division in Ambarnath. But as of now this is still in rnd. So we have not yet even completed the R D trials for this product to come out of R D and for us to commercially launch we are at least looking at two and a half years time. So on that particular chemistry we have not made, you know, fast progress. I think the first launches would be anesthetic, adhd, cardiovascular, those kind of products.
Unidentified Participant
Okay, okay. And can we expect any DMF filings for this in the year 2020? Because I don’t see any new DMS for the year 2025. US Database.
Saloni Satish Wagh
DM if you are asking.
Unidentified Participant
No, not some of the DMS like in general I just checked the US DMS database. I don’t see any new DMS for the year 2025. So can we expect any.
Saloni Satish Wagh
Yes, yes, we are expecting to file.
Saloni Satish Wagh
At least 3, 4 new products in. The next financial year. Of course some of the new products what we are launching, those also we will file and there are some existing. Products in our portfolio. Those also we are in discussion with some customers who want us to file those DNS. So you can expect three fold DMS in the next year also.
Unidentified Participant
Yeah, thanks. Thanks for answering my questions and great job on that.
operator
Thank you. The next question is from the line of Devansh Patel from Anubhuti. Please proceed.
Unidentified Participant
Hi ML.
Saloni Satish Wagh
Yes you are audible.
Unidentified Participant
I just had a question regarding the other OPEX line in your financials. I think I’ve gone up about 33%. So I just wanted to know.
Krishna Raghunathan
Basically if you look at it, the other OPEX line also has the freight component. You know all the freight costs have all increased across the corresponding commission. They increased in sale will also have a direct impact on other expenses which are directly linked to production and sales. So those are the line items which have got increased. Basically the commissions, the freight, the store sales tax, these are the numbers which. Have got increased on the other output slide.
Unidentified Participant
Okay, understood. And my last question is just on the profit margin front like since it has gone up to almost 70% in this quarter on a further basis as well and at the same time the LATAM contribution has increased. So you obviously mentioned that Brazil is a regulated market. So Is this where like the greater margin is coming from? Because Europe and America has come down. So I just wanted to understand that.
Saloni Satish Wagh
Next Europe actually has not come down in terms of percentage. It might look that there is a. Slight dip in Europe because of course our base is much larger from 570 to. But if I look at the actual sales value of Europe, it has gone up only. So we have seen growth in Europe, Latam, even in other markets like Southeast Asia we have seen good growth happening.
Unidentified Participant
And the margin expansion is coming from these markets. Right? Like the regulated ones.
Saloni Satish Wagh
Yes.
Unidentified Participant
Okay, perfect. Thank you so much.
operator
Thank you. The next question is from the line of Richa from Equity Master. Please proceed.
Unidentified Participant
Thank you for the opportunity. My question is, you know on this formulation facility that is coming up, if you could just highlight the investment that has gone into it and what kind of revenue potential you are expecting and whether this thousand crore guideline factors in any contribution from defined contribution from formulation facility.
Krishna Raghunathan
As of now around 130 crores have gone into formulation facility and the revenue at the max the potential is around 450 to 500 crores of revenue as. Possible from the formulation facility. Probably by Q2 or early Q3 is that we believe that we would be able to capitalize.
Unidentified Participant
Okay, and but within this target of 1000 crore what kind of revenue are you capturing in you know, by FY27.
Krishna Raghunathan
To be a very, very minimal number. I would say maximum not more than around 100 crores is what we are factoring if at all that could be. This depends upon all the regulatory approvals which we are expecting from the site. If everything goes well, those will be something will be an added advantage but which are not factored at this stage in the thousand crores.
Unidentified Participant
Okay, okay, understood. And so my second question is on the pricing scenario. Are you witnessing any kind of pricing pressure and how confident you are when it comes to this 33 to 35% kind of margin guidance?
Saloni Satish Wagh
As of now we are not seeing any pricing pressure for the product that. We operate in and we are very confident that we will be able to. Maintain this 33 to 35% margin. Because we have lot of new products, we have diversified with the jobs with. The new launches, the formulation keeps coming in and plus scale up of our. Existing portfolio in regulated markets. I think they’re very confident that we. Will, you know, maintain this 33 to 35% EBITDA margin.
Unidentified Participant
Okay, and then your margins in LATAM versus Europe market, would they be similar or Latam would be lower than European market?
Saloni Satish Wagh
European Market is definitely slightly higher than latam.
Unidentified Participant
Okay. And how big the Delta could be.
Saloni Satish Wagh
That, I mean, will not be able to discuss too much into that.
Unidentified Participant
Okay. Okay. And then another question is on client concentration which has, you know, in the presentation it has gone up. I just wanted to know what is the contribution from top three clients? And do you perceive this as a risk or opportunity? You know, whether you’re growing with some of the largest end players, you know, some kind of qualitative comment.
Saloni Satish Wagh
So our top 10 customers today contribute almost 50% of our revenue. But you have to understand that the top 10 customers in that five or. Six are actually large distributors. So these distributors in turn are catering. To hundreds of customers. So that way itself our customer base and the top 10 customers are diverse. These large distributors have been working with us for more than 15, 20 years. They are basically our representatives in those markets. Just for the ease of business and payment terms. They buy the product and they stock it in their warehouse. And again, customer requirement, they supply it to the small customers. As Such, that top 10 itself is. Really not top 10. It is a mix of hundreds of customers.
Unidentified Participant
Okay. Okay. And this last clarification I needed on the capacity, is it 932 or is it thousand something or you know, or the number looks different because maybe there’s some element of backward integration. If you could clarify that.
Satish Waman Wagh
It’s around 1020 K across the rotate plant here. I think that is the final number.
Unidentified Participant
So what does. Why is this 932. And you know why there is this slight difference?
Saloni Satish Wagh
No, no, actually the 932 KL is. For the LOTE side. And that 1020 KL which we have. Put up, that also includes the Ambarnath capacity. So all put together at the company level across Lotte and Ambarnath, it is a 1020 king capacity.
Unidentified Participant
Okay. Okay. Thank you. And all the best.
Saloni Satish Wagh
Thank you.
operator
Thank you. The next question is from the line of Sri Hari from PCs Securities. Please proceed.
Srihari Chintalapudy
Yeah. Am I audible? Yeah. Thank you. I had three questions basically. Firstly, if you could please help with the delta and contribution margin for integrated and non integrated products. Secondly, for the contrast media product, what is the kind of aspirational market share you have? Mine. And thirdly, are you planning to install inhalence in the formulation unit? Thank you.
Saloni Satish Wagh
I’m sorry, can you repeat your question? I was not able to clearly hear you.
Srihari Chintalapudy
Yeah. First one pertains to the delta in gross margins for integrated and non integrated products.
Saloni Satish Wagh
So that like our CFO mentioned before, also that we never discuss or guide on any, you know, gross margin. However, at the EBITDA level or in general qualitatively, at a profit margin level, definitely the products which are backward integrated have a much higher profit margin. Because we manufacture these right from the basic stage. We don’t take any kind of advanced intermediate for these. So definitely the profit margins are much higher as compared to a non backward integrated product.
Srihari Chintalapudy
So would it be around 10% that.
Saloni Satish Wagh
Delta will not be able to define?
Srihari Chintalapudy
Okay, yeah. Second one was put in the contrast media product. What is the kind of aspirational market share you have in mind?
Saloni Satish Wagh
So on an immediate term like let’s say in the next two years, we are targeting at least 20% of the market share because this is a very large product across regulated markets and we will take a little bit time to get the CEP and the USDMF in place. So I think in the next two years the 20% market share is what we are targeting.
Srihari Chintalapudy
That translates to $100 million. Is that what you’re saying?
Saloni Satish Wagh
No, the API is about. Yeah, correct.
Srihari Chintalapudy
Okay. $100 million for the single product for two, three years.
Saloni Satish Wagh
Yes, over the next two to three years. I mean the current discussions, what we have are to the tune of that if we are able to get the full volume.
Srihari Chintalapudy
That’s great. And finally, whether you plan to install inherence line in the foundation situation.
Krishna Raghunathan
I couldn’t hear you. What lines
Srihari Chintalapudy
in a length.
Saloni Satish Wagh
Pardon?
Srihari Chintalapudy
Inhalants.
Krishna Raghunathan
Inhalation.
Srihari Chintalapudy
Yeah, yeah. Inhalation products.
Krishna Raghunathan
Yeah, of course. Yes.
Saloni Satish Wagh
And we are somatic also. We have seen good growth. What are you saying? Okay, okay. Are you asking that in the finished formulation are we planning any inhalation products? Is that the question?
Srihari Chintalapudy
I mean to say in a link, do you plan to install pumps? I’m asking this because Stravato seems to be an opportunity.
Saloni Satish Wagh
Okay, so that’s what I think what Krishna said that are we expecting to put up a line for inhalation devices in our formulation? Plant. Correct.
Srihari Chintalapudy
Right, right.
Saloni Satish Wagh
Yes, we are. We are, yes. So we are working on 2, 3 very niche CMO opportunities wherein for some of our existing products we have found large companies who want to tie up on the inflation part of it. We are expecting this to sort of take off in the next 12 to 18 months. But yes, it is in pipeline.
Srihari Chintalapudy
So you’re working on it. And it will take about 12 to 18 months. What is the kind of outlay you would be incurring on that? What is the kind of outlay you would be incurring on that capex.
Saloni Satish Wagh
So the capex is already done what Krishna mentioned in the Ambarnath capex, what we have done this is including that inhalation line. So Ambarnath facility basically has three, four different lines. One line is the liquid anesthetic line that we have for bottling. The other line, what we have is oral solids. The third line we have inhalation. And then we also have made provision for an injectable line but that we. Will be doing in a phase wise manner. So for the first three parts, what I mentioned, the liquid anesthetic, the oral solids and the inhalation that is already part of the capex. But we have spent last time year on am.
Srihari Chintalapudy
So I mean can you share if you are working on spatu.
operator
Sorry to
Saloni Satish Wagh
that will not be able to discuss. It’s a very product specific information.
Unidentified Participant
Okay.
Saloni Satish Wagh
But we are working in that area.
Srihari Chintalapudy
Okay, that’s great. Thanks a lot.
operator
Thank you.
Saloni Satish Wagh
Thank you.
operator
Ladies and gentlemen, due to time constraints, that was the last question for the day. Thank you members of the management and everyone for attending on behalf of Supriya Life Sciences limited that concludes this conference. Thank you for joining us and you may now disconnect your lines.