Supriya Lifescience Limited (SUPRIYA) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to the Superior Life Science Limited Q4-FI26 Earnings Conference Call. As a reminder, all personal lines will remain 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 the operator by pressing star, then zero on your touch-tone telephone. Please note that this conference is being recorded. I will now hand the conference over to Ms. Neha Salgan from EYIR for opening remarks. Thank you. I am over to you.

Thank you, Ryan. A warm welcome to all the participants to the Supriya Life Science Limited Q4 FY26 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 risks 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 a copyright material of Supriya Life Science Limited, and it cannot be copied, rebroadcasted, or attributed in the 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 Vag, Executive Chairman and Whole Time Director. Dr. Saloni Waag, Managing Director, and Mr. Krishna Raghunathan, Chief Financial Officer. I would now request Dr. Satish Waag to provide you with a brief update on the quarter. Over to you, sir.

Good morning, and a warm welcome to all the participants. Thank you for joining us as we discuss the Quarter 4 Financial 26 performance. of Supriya License Limited. I hope you have had the opportunity to review our results and investor presentation, both of which are available on the exchange and the company website. Before we get into the performance details, I am pleased to announce A significant regulatory milestone for superior life science, our DOTA facility had received the U.S. FDA Establishment Inspection Report , with a voluntary action indicated classification following the surprise inspection conducted in February 2026. The inspection resulted in only one minor observation which was proactively addressed. Underscoring the strength and our compliance culture, robust quality system, and adherence to CGMP standards. This achievement reinforces our credibility with global regulators and marks an important step in sustaining growth in regulatory markets. On that note, let me talk to you through our full year performance. I am glad to share another achievement. We achieved our financial year 26 revenue target. Despite the challenging quarter, we remained focused on executing our strategic priorities and are delighted to report our highest ever revenue and EBITDA performance for the year with a record quarterly revenues achieved in quarter 4th financial year 26 of Rs. 277 crores. During Q4, industry-wide headwinds arose from geopolitical challenges, including supply chain disruptions, elevated crude and solvent prices, and intermittent shortages, which impacted our Q4 26 revenue by Rs. 10 crores. How are you? Despite that, we have delivered the V-Silent performance. Financial year 26 revenue grew to 18.9% year-on-year to 828 crores in line with our guided growth of 20%. While EBITDA stood at Rs. 294 crores, with a robust margin of 35.5%. This performance was driven by the favorable product mix, expanding global demand, and disciplined cost management. Export payment, a peak road driver, contributing 82% of the financial year revenues. You don't. Delivered healthy growth with 40% share during the year. Background integration initiatives, which also progressed in financial year 26 at 76%, strengthening cost efficiency and supporting sustainable growth. Coming to our new product launches for financial year 26. We introduced a key cardiovascular product during financial year, quarter 3, financial year 26, which began contributing to Q4 26. This product has started the scale and expected to pick up higher momentum going forward. We also launched our ADHD product, which has seen strong demand for LATAM and Europe with further growth anticipated over the coming quarter. Additionally, our liquid anesthetic product was commercialized during the year and has been supported by steady month supply. Finally, on the contrast media, while developing the product, we identified opportunities for further enhancement, which can enhance our economics on the product. Hence, we have decided to continue with the development. It is expected to be launched in H2 financial year 27. Thank you. For financial aid 27, we plan to further strengthen our anaesthetic and ADHD portfolios with a new launch in such segment aimed at enhancing pipeline depth and supporting broader market penetration along with the sustained growth. We will provide more details about these products in coming quarters. We are also glad to share that we have secured all clearances for the Patal Janda land, which Today's development to begin with Phase 1, Groundbreaking Financial Year 27. Approximately 20% annual growth, revenue, and repeatable margin 33 to 35%. Our trajectory towards the 1002 revenue, milestone by financial error, 27 remains from beyond track, underpin by a robust pipeline. Plan the launches of three to four products annually and sustain the demand curve. Core therapeutic segments, including anesthetics, antibiotics, anti-anxiety, vitamins, and ADHD. However, the growth won't be linear across the quarters as we have scheduled our annual maintenance shutdown in August for our older blocks A and D. Nevertheless, we remain highly confident and well positioned to achieve the Rs. 1000 crore revenue target by financial year 27 as demonstrated in financial year 26. Going forward, our focus remains on expanding a regulated market while strengthening our competitive ways through backward integration, regulatory expertise. And broad portfolio, supported by growing customer traction and disciplined execution. We are well positioned to capture long-term growth opportunities and deliver consistent value. With that, I am now inviting our CFO, Mr. Krishna Raghunathan, to take you through the detailed financial performance of Q4 and Financial Year 26. Thank you.

Thank you, sir. Good morning, everyone. Let me take you all through the operational highlights of the quarter and year-end, following which we will open the floor for questions and answers. For Q4FI26, the company reported revenue from operations of Rs. 277 crores as against Rs. 184 crores in Q4FI25, a growth of 50% year-on-year. EBITDA for the quarter stood at Rs.98 crores as against Rs.68 crores in Q4 F525, a growth of 44% year-on-year, and EBITDA margins stood at 35.5% for Q4 F526. PAT stood at Rs.74 crores as against Rs.50 crores in Q4 F525. PAT margins stood at 26.8% for Q4 F526. For FI26, revenue stood at Rs.828 crores as against Rs.696 crores in FI25, a growth of 19% year-on-year, broadly in line of our guided numbers. EBITDA stood at Rs.294 crores as against Rs.261 crores in FI25, a growth of 13% year-on-year. EBITDA margins were at 35.5% for FI26, surpassing our guided range of 33% to 35%. Past today rupees 209 crores, path margins were at 25.3% for FI26. Our capex for FI26 are rupees 152 crores, largely driven by spend on the Ambatna facility along with maintenance capex and smaller projects including the reboblock and formulation plant requirements. On the Patal Ganga land, as our chairman has updated, we have received all necessary clearances and will be developing the facility in phases. The project will include two APA Stoke Advanced Intermediate Blocks and two Formulation Blocks. The total CAPEX year mark for this facility is around Rs. 200 gross for Phase 1. On borrowings, we would like to report that for the full year, we have not utilized any working capital limits except for network credits and bank guarantees. With that, we can open the floor for questions and answers. Thank you.

Thank you. Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We take the first question from the line of Rachana Kukureja from SIMPL. Please go ahead.

Good morning. Thank you for the opportunity and congrats, team, on a good set of numbers. I have a few questions. For FY26, therapeutic areas have contributed around 91% to our revenues. So this means that other therapeutic areas have contributed around 9% in FY26. Versus 7%. That comes to around 75 crores in FY26 versus 50 crores in FY25. So, if you could please provide some follow or list down on which are the other therapies contributed here. And is this likely a one-time event?

So, we have actively introduced a lot of products in the anesthetic therapeutic category last year. And we have also introduced, you know, in cardiovascular, another advanced intermediate. So, because the anesthetic portfolio now has six, seven products, and they are our fast-growing product across regulated markets, you feel that, you know, they are the larger contributors. Having said that, other than anesthesia, antihistamines are fairly stable. Vitamins, we have actually seen a very good growth because also the DSM volumes have now stabilized. And for a lot of other vitamins like B12 and all, we are getting good traction. And other than this, the other therapies like antihypertensive are also, we are seeing good traction. So it is not like that, that, you know, the larger contribution is coming from the top therapeutic categories of only a few selected products. The range in those products is also growing for us.

Okay. Second, apart from key therapeutic categories, other than the mentioned in the presentation, and as you said, what would be other categories where we are seeing growth?

So, these are mainly smaller therapeutic categories like anti-allergic, where we have some products, but as a strategy, we are not aggressively venturing into a non-regulated market, because we are a very margin-focused company. So, our goal is always to tap more regulated markets. So, their contribution will always remain to the lower end. But yes, anti-allergics are there. Like I mentioned, anti-hypertensive is there, which is not shown in the presentation. So, these are two, three categories where we are seeing decent growth, but as a strategy, we are only focusing more on the regulated markets.

See, I would like to add something on it. Ma'am, you should see first the portfolio of all the products. We are focused on China. So whatever products are not getting from India, those products are focused on the therapeutic category. So whatever products we add. They are having a future growth for next three years, which we will visualize and we put. This is some information for your additional knowledge.

Thank you. Second question is, growth has been across markets, but overall, Asia and Europe have grown very strongly. So, again, if you could provide some color on what has given growth in these markets.

So we have always maintained that regulated markets are our focused areas, and Europe has always been a large revenue contributor for us. The main growth in Europe has come because we have actively got CEP approvals for two, three products. So there is some traction we are already noticing. Plus the existing products where we already had CEPs, we were able to acquire new customers. So, that's one of the main reasons why the Europe market has grown. In Asia, whenever we launch any new products, the first penetration happens in domestic market as well as the Asian market because the regulatory barrier for these markets is lower and they are semi-regulated. So, all the new products that we launched, the three products last year, there we have seen good traction in Asia and semi-regulated markets. That's why the contribution of these two markets has grown in this year.

I would request you to please join the queue for follow-up questions. Thank you. We take the next question from the line of Sajal Kapoor from Anti-Fragile Thinking. Please go ahead.

Yeah, thanks for the opportunity. I'm trying to understand the business over a medium to long-term horizon, so my questions are probably a little different from what you normally get asked. So two questions to begin with. Reflecting on the last decade, what problem is Supriya now capable of? And taking on that would have seemed out of reach perhaps 10 years ago. And how has your R&D approach had to evolve to make that possible? That's my first question.

So, the first thing is on the regulatory part of it. I think now we are more capable of handling regulatory expectations, and the best example for that is the USFDA approval that we got in the last quarter. It was a complete surprise inspection where the auditor just walked into the facility with no prior intimation, and we were able to clear that surprise audit of seven days across seven manufacturing blocks with only one minor observation. So I think definitely because of the better infrastructure and the capacities that we have built in the last three, four years, regulatory has been a positive takeaway for us in that. And on the R&D, of course, the R&D approach has also changed for us in the last five, six years. Previously, the R&D was only focused on life cycle management. And the spend on R&D was also significantly low. But in the last three years, we have set up a new R&D facility at Lotte plus a new R&D facility at Ambarnaath. So our spend has also doubled. And with now a R&D focused approach, we have been able to successfully launch three to four new products every year. So I think these two things have definitely been very different from what we have seen in the last one decade.

Yeah, that's helpful. And second is, as the business continues to scale after expanding across products, capacities, and geographies almost simultaneously, what becomes the dominant priority between capital allocation, managing complexity, or improving utilization of current capex, growth capex like Ambarnaath and other newer sites? What is more important today?

So, I think today the most important thing for us is further capacity building, and now a lot of funds would be allocated towards that. Like our chairman mentioned that we've already got the clear input for Patal Ganga, and because we can see a very good growth in our existing set of products, plus the new launches which will come up in the next couple of quarters, we need to be prepared for when these products scale up. So, a large portion of the capex would be put up for Patal Ganga to the tune of about 200 crores in the next two years for further capacity building. Plus, the MO, CDMO, we are seeing good traction. There are a lot of the larger companies want to tie up with us for a lot of APIs and basket kind of products. So we need to put up capacity for taking care of that growth as well. So I think a lot would be focused on capacity enhancement.

Sure. That's helpful. I'll reach you, NdQ. Thank you.

Thank you.

Thank you. We take the next question from the line of Sanjay Kumar from iThought PMS. Please go ahead.

Hi, thanks for the opportunity. So, first question on the cardiovascular product. I think we had previously indicated that we have a thousand ton capacity of which 300 tons you are in advanced discussions. So, have you converted that to a final order? The first, can the string of tons be fully utilized in FI27? Also, can you talk about the regulatory aspects of this particular intermediate? Because if I am right, I think there is a PLI for this product which was won by another competitive.

So, we have seen very good scale-up of this advanced intermediate in quarter 4. Already, we have started seeing revenue contributions, and the 300 metric ton, I think we have come very close to that number in FY27, looking at the current order book that we have. So that product is scaling up really well. From the regulatory perspective, we have not enrolled ourselves into any PLI schemes. And as a policy and our chairman's thought process, we don't intend to do that. We are focusing more on getting the customer traction and getting the larger customers to qualify us and make us a part of their doziers, which has already started happening. So we have been able to lock in contracts with three, four very large users who will take care of the 300 metrics and capacity.

Okay, got it. And the cost for this will roughly be around $100 per kg?

So that will not be able to, any product specific prices and costing cannot be discussed in this forum, I am sorry.

Okay, second question on the anesthetic. Have we signed the CMO customer for the liquid anesthetic or the sevofluorane formulation and what is the contract structure for this product and if you can talk about the capacity and the revenue potential in FY27?

So, we have a thousand metrics and plus capacity, which is built in the current facility, and the CMO discussion is at an advanced stage, but we will not be able to divulge any more information on that, unless a firm term sheet is signed. So, we will be, you know, the revenue contribution on all, we will be able to tell only in the coming few quarters, once everything is finalized.

Sir, I want to add one, excuse me, sir, I want to add one more, please. First thing I think people must understand, we are China one, China plus one. So, if China is selling a product and India does not have any manufacturer, what do you think? The product should be manufactured or product has a future? What is your suggestion on that? So, having an experience in the manufacturing facility for almost more than 47 years. So, we do have understanding that we will do the best. And China plus one will fight continuously because we don't want to fight in India with other manufacturers. Otherwise, it will be a bit of 7% in the future. I'm sure you understand.

Definitely. Yes, sir. Yeah. Got it. Okay. And just a follow-up to your initial remarks.

I would request you to join back the queue for follow-up questions. Thank you. We take the next question from the line of Khrusha Sanchaira for Molecule Ventures. Please go ahead.

Yeah. Am I audible? Yes. Hello. Yeah. So, firstly, congratulations on a good set of numbers. My first question is on the F block at our Lote Parshuram plans, which was mentioned in your presentation. So, how much capacity are you planning to add with this new block, and what kind of capabilities are they envisaging for the same?

So, we are planning to add about 150 to 200 K for the capacity, and this will come up in the next two years' time. We are expecting about 40 to 50 crores of CAPEX in this, for this dedicated for the X block.

Okay. I'm listening. And secondly, on the growth drivers, so, you know, we do our revenue to be able to grow in this quarter, which is a very impressive growth. So, my question is, by any chance, was there any contributions from the CDMO segment, because we were expecting some kind of revenue from our recent contract in this quarter, or was this entirely driven by the API segment, given that we launched two new APIs in the RAPs quarter?

So, it's a combination of our new launches, plus, of course, the DSM contract is now stabilized, and we are doing volumes of about three tons a month. So, DSM actually has contributed to the tune of 30-35 crores in the last financial year, and the peak that we expect is about 60 crores, which we will be able to see in F527. So, the growth is mainly come from the DSM contract coming or reaching this stable condition, Plus the new launches, the new products that we launched, the cardiovascular advanced intermediate as well as the anesthetic API, they have also contributed in the last quarter. Plus the growth in the existing basket is also there. So all our existing APIs across different therapies, we are seeing good traction in regulated markets like Europe and Latin. So, their demands have also gone up. So, I would say it's a combination of all three.

Thank you. We take the next question from the line of Abhishek from Padmajha Investment. Please go ahead.

Am I ordering? Yes. Yes, I mean, my first question. Yeah, my first question is regarding USA market. Like, what are the constraints? Like, why are we not able to grow despite having USFDA regulation involved? Like, 1% are worth more, right? In the Q4, F1, JX, and it's more, you see. We are even finding DMS, too. Like, where is the gap?

So, the current portfolio that we have, the larger market is in Europe and LATAM because most of the Finnish formulators are based across this geography. So, the current portfolio inherently does not have a very large market in the U.S., but some of the new products that we are launching, case in point, the anesthetic that we launched last year, plus the ADHD drug and some of the new products that we launch in the next financial year, They will have a larger market in the U.S. So you will see in the next three, four years the exposure. This market will grow, but having said that, Europe and Hattam would still be the larger market for us.

Okay, and the second question is on the protein, like the advent of this weight loss products, protein consumption has significantly increased weight. So, if you have any of this, like, do you have any form authors in place? Like, I do remember you saying that there are a few enquiries from Southeast Asian countries in the past, Concord. Can we expect a jump in at 5.27?

No, so we have said this in the last couple of earnings calls as well, that this particular technology is a very new technology in the protein market, and especially for the Indian market, it's first of its kind. So a lot of research is happening with the larger end users. They have already bought smaller quantity samples from us, and they are developing their products, the finished formulations with those samples. So, this will not be like an immediate turnaround for us. I think it will still take some time. I'm not seeing any large revenue that can come in FY27, but we will, of course, keep updating as in when we have some development on that.

Thanks a lot. Thank you. We take the next question from the line of Rupesh Tartia from Long Equity Partners. Please go ahead.

Hello. Hello, sir. Thank you for the opportunity. My first question is, sir, on this cardiovascular intermediate. I mean, you are saying that you have order book which will, you know, utilize, let's say, 300 metric ton of capacity. And then if I were to tie that back with your revenue growth guidance, where you are saying you will go from 830-odd crore to 1,000 crore, but this single product itself will give us that kind of growth, is my understanding. So are you expecting some degrowth in your core portfolio? I mean, the two things don't add up, just this one product and the revenue growth guidance.

So, the 300 metric and what we indicated will not come fully in FY27. I said we'll get to maximum utilization in FY27, but that entire number to come will happen over the next two to three years' time. So, that's the reason why we are not guiding the full potential revenue in FY27 for that product. And there is no degrowth in any of the therapeutic categories or our product basket. They are all growing, but because regulated markets have been a focused area for us, regulatory approvals take time. So the growth will also come eventually. It will not come in one year's time, although there is potential for the product.

So 100, 100, 150 metrics, is that a fair number for the product?

Sir, in terms of quantity, we cannot discuss on this forum, please. Okay, okay.

And the second question is, how do you see liquid anesthetic product ramp up in FY27? And the linked question to that is, where are we on the European approval for the formulation facility? I thought we should have already had a visit by now, maybe some sort of approval. The whole thing looks delayed.

So, no, we have not been able to get the audit date from the auditor, but we have some indication from them that the audit would be scheduled in H2 of FY27. Before that, there was no availability of the auditor, but we are expecting it to happen in H2 of FY27. Then it's typically around October or November, the date we have gone.

November will be late. Okay, okay. So without the approval, how do you see the ramp-up of liquid anesthetic products in FY27?

So, in FY27, as far as the finished formulation liquid anesthetic ramp-up is there, we will not see much revenue contribution. The liquid anesthetic contribution will only come from the API, from the Lotte site, because it will take us 3 to 4 years to get the ramp-up in the finished formulation facility.

I will add some more thing in this. See, for selling the product, you don't need European agency to come here because we already have WHO and COPP in existence. For selling that product, currently even in US, our drug master file is ready. We have already filed the CEP. So, selling is not a big issue because this is again China plus one. Do you understand that?

Yes. Yes.

Thank you.

Rupesh, I would request you to join back the queue for follow-up questions. Thank you. We take the next question from the line of Dalsil Javeri from Crown Capital. Please go ahead. Hello. Yes, Dalsil, go ahead.

Yeah, yeah. Hi. Thank you so much for taking my question, sir. Firstly, congratulations on a really great set of results, sir. Sir, just wanted to understand two parts, sir. Like, our Q4 has been, you know, really tremendous. So, this run rate, can we maintain? Like, are we going to face some capacity constraints? Because I think we said in the PPD, we are around at 76%. So, how do you see that, sir? Or is there, was there a part of seasonality in Q4 because Q4 has really, you know, outperformed the others. So could you just, or can we maintain this under itself?

I'm sorry, can you repeat the question? I was not able to get the first part of the question.

So basically, Q4, we've done a really great growth, and usually we don't have that much seasonality in Q4, Q3. So can we expect Q4 run rate of 270 crores to be maintained over the period of time? So what do you feel about that?

So, no, I mean, we'll not be able to give any quarter-on-quarter guidance of the run rate. Like we have said that, you know, in FY27, we'll be able to achieve the 1,000 crore. So, all quarters might not be linear growth because, like our chairman said already, that in the quarter two, we are expecting some shutdown and some refurbishing activities. So, that run rate maintenance will not happen. But we'll be able to achieve the 1,000 crore guidance that we have given.

Okay, okay, fair enough, fair enough. And with capacity utilization, I think we are at around 76%. So by this year end, we will be completely utilized, right? And the new facilities that we are going to commensurate, that would be in FY28, right? Is that fair understanding? What would be the potential from them if we could quantify in FY28?

So, we are doing a lot of de-bottlenecking activities, and that's one of the reasons why we are taking the shutdown in quarter two. So, all the de-bottlenecking across different blocks, plus we are also planning to put up a block, and there is an extension that will come to the D block. So, all these put together will give us an additional capacity of 150 to 200 kg, which will be utilized over the period of two to three years. So, we will not be able to quantify at this point how much of an additional revenue that would give, but we are building that capacity to take care of the growth that we are seeing in the existing APIs plus the new launch products.

Okay, okay. Fair enough. And this last question from my end. It's a bookkeeping question. Q for the tax rate was relatively low. So, what is that effective tax rate for like the next year? Could we quantify that?

I think the average would be somewhere between 24 to 25.17 years.

That would be the rate you will be landing up to.

See, and Q4 is anyway, basically full year minus three quarters.

That is how the Q4 numbers are derived.

So, full year, it can expect somewhere around, say, 25.17.

Okay, okay, okay. Fair enough. Yeah, yeah. That's it from myself. I'll join back with you. Thank you.

Thank you. We take the next question from the line of Ajitya Pal from MSA Capital Partners. Please go ahead.

Hello, I'm audible. Thank you so much. Great setup performance. Q4 was really, really good. And as you had commented last quarter that this quarter is really going to be good. As per your commentary, it came in. Just wanted to understand the gross margins. So, we saw a bit of hit on gross margins. Is it largely because of the scale-up of cardiovascular intermediate, or is it because of some raw material prices that we are seeing?

So, as you know, that we never guide on gross margin. So, I will not be able to comment anything.

Just want your commentary that what happened this quarter versus the three quarters that went into S526. No guidance. Just commentary.

So, no, I mean, we don't talk on gross margins at all. So, we'll not be able to speak on gross margins. If you have a question around the EBITDA margin, yes, I can explain a little bit that the expenses of Amvarnath have started for us, which is a very large number, and the revenue from Amvarnath has still not started. So, that is one of the reasons why although the EBITDA has grown in absolute terms, in terms of percentage, it looks slightly lower than the last financial year, only because the expense part of Amvarnath has now started.

And when are we expecting one, the rebuffling of a DSM contract to start scale-up? Because that is largely a lottery per firm event, and the other is Ambarnaath. When can Ambarnaath become a revenue event for us?

So DSM, I already commented just a while back that already we have done around 30-35 crores of revenue last year from DSM, and 60 crores is the peak. I think we'll come very close to that number in FY27. Ambarna, we have started some revenue generation, but very small. I think the full effect of Ambarna's revenue contribution will still take about two to three years. But in FY27, you can see some revenue contributions from Ambarna, mainly coming in from the semi-regulated markets.

Understood. Wishing you all the very best. Thank you so much.

Thank you. We take the next question from the line of Kiran from Table 3 Capital. Please go ahead.

Thank you so much for the opportunity. So, a couple of questions. First question, just from a regulatory clarity perspective and Ambarna's usage. So, we have USFDA, EIR, and UGMP for the Lotte facility. Ambarna's EU is scheduled in H2FI 27, and USFDA, we don't know yet. Is that the right understanding, and when will Ambarna start contributing to revenues? Is it FI 28?

So, in FY27, Ambarnaath will contribute to revenue, but the full effect of Ambarnaath will at least take three to four years. As far as the FDA is concerned, yes, like you rightly said, the EU audit is scheduled for H2 FY27, but we still have not got the dates for US FDA audit. We are following up with them. However, due to unavailability of auditors, we are not able to get a date as of now. But the Lotte facility has all the approvals, including U.S. FDA, which just happened in the last quarter.

Perfect, perfect. Thanks for that. The second question is, in terms of, you know, we were supposed to launch a contrast media product in Q4, what is the status and scale-up? And two, on our main products, are we seeing any pricing pressures in the European or the U.S. markets? If you could just answer these two. That would be great.

So like our chairman explained in his opening speech, in contrast media, we have identified that the technology needs to be further strengthened, and we see an opportunity for that. Because we are a very margin-focused company, we need to get the best process in line and the most cost-efficient one. So a lot of work is happening on that in the R&D. We are expecting to now launch this product in H2F527. In the coming few quarters, as soon as we have some clarity, we can, you know, let you know the launch date. But as of now, it's scheduled to be an H2 F527.

Got a pricing pressure on the main product.

A pricing pressure, as of now, we are not seeing much because we have a very agile way of working. And a lot of the price increases that we were seeing in solvents, because of the increase in the crude prices, we were able to pass them on to our customers because we work with customers on a purchase order basis. So whatever little increase we have seen in raw material prices, we have been able to pass on to the customers, and they have also accepted that. So we are not seeing much pressure in terms of pricing on the final API.

Perfect. Thank you so much. Congrats on all the best.

Thank you.

Thank you. Participants who wish to ask a question, please press star and one. We take the next question from the line of Dheeraj Kumar Reddy from Alpha Square. Please go ahead.

Thank you a lot for the opportunity. I just have a couple of questions. The first one being like in the previous participants question you mentioned about your R&D budgets being like almost doubled or like even, you know, they went beyond over the last decade. What are the areas currently we are investing into? And also, maybe if you can touch upon beyond FY28, what are the kind of growth areas today that the company is focusing on? I know that for the next two years, I think the growth is almost sorted. But what is beyond FY28 or FY29?

So, in regards to R&D, we have actually set up two new R&D labs. One we set up at Lotte about two years back, and we have also set up one in Amvarnath last year. The main focus of R&D is in two, three different areas. One is addition of new APIs to the portfolio every year from newer therapies. And we are always focusing on, like our chairman said, niche molecules where we are able to bank on the China Plus One strategy. Other than this, R&D is also focusing on CMO, CDMO, and CRO areas, where we are looking at larger tie-ups with, you know, the larger multinationals or innovators. So, that's one area that we are working on. And then there is also a formulations R&D at Ambarnath, which is focusing on finished formulations. Mainly, we are focusing, again, there on niche areas like liquid anesthetics and injectables. So these are the three different areas where R&D is currently focusing, and that's why the R&D budget has also doubled. We expect this to grow in the next couple of years with increasing investments in R&D across these three different areas. As far as the growth in the next three to four years is concerned, we have already said that we will grow 20% plus year on year. So I think that kind of trend we would continue. When Ambar Nath is fully commercialized and with Patal Ganga coming in, the growth can be accelerated, but that we will only be able to comment in the coming few quarters.

Got it. My next question is if everything comes online, what is the maximum potential for the company in terms of revenue and in terms of overall margin structures? Because obviously by then our expenses also would have been much more, there could be some operating leverage also which will kick in. Do you see like this 35-36% today what we're doing can actually go to 38-39% because cost being like much more attractive to the overall business?

So, like I said, you know, the larger guidance on FY28 and the next couple of years will only be able to give in the coming few quarters because we still have not reached, you know, the full revenue potential of Ambarnaj. The regulatory approvals have not yet come in. So, once I think all those things are there, we'll be able to ride on the further numbers. I find my YouTube.

No, no, I'm just trying to understand what is the peak revenue potential if Ambarnaath and Patal Ganga goes online? So, it completely depends on the product mix.

It completely depends on the product mix for us, and we are still not in that stage where we have finalized the new product pipeline for Patal Ganga. So, it completely depends on the product mix and the kind of CMO-CDMO opportunities that we get because Amvarnath is a mainly CMO-CDMO focused finish formulation facility. So, it completely depends on that. And as of now, we have a lot of discussions ongoing, but up and until nothing is signed and the term sheets are not there, we will not be able to guide on the full potential numbers. But we will come to that in the coming few quarters once we have full clarity on the CMO-CDMO opportunities.

I'm going to give it a little bit.

On the EBITDA margins, 33% to 35% is something that we would like to continue guiding because whenever we launch any new product, may it be on the API side or finish formulation side, the first scale-up always happens in semi-regulated markets where the prices that you get are not as high as the regulated market. And then it takes two to three years for the product to mature into regulated markets. And because now we are actively every year, three to four new molecules in our basket, plus new products on the finished formulations also, there will always be some products in semi-regulated markets and some in regulated. And because the cycle will continue for us in the next five to six years, the margin would be around 33 to 35 percent.

Good morning, everyone, and welcome to the call. Thank you. We take the next question from the line of Dipankar Bisht from CCV Investment Managers. Please go ahead. Hello.

Yes, I'm able to hear you.

Yes, thanks for the opportunity. So, my question was, in the presentation, it is mentioned that GLP, when product development, is for a P&D, Indian-generated company. So, is this a signed agreement, or is it still in discussion?

It's still in discussion phase, but it is at a very advanced discussion phase. But we still have not signed the agreement.

So, by when can we expect the revenue from this segment?

So, revenue will take at least two years because it's just the development has also not started. We are still in discussion with them, and as per their expected, some development work has started. But I think it will still take two years minimum for some revenue to start coming in from this.

Okay, and next question was, Indharth, net working capital day was increased to 170 days in FR26 compared to 158 in FR25, and I believe it was 124 days in FR24. So what reversed this improvement and what's the working up in target for FR27?

See, we are looking at somewhere around 170 to 180 days from moving forward. See, what is happening is as the business has grown, the data days had increased because the last two months were there in the capital. That is why the data days have gone up, and because of the data days, the, what do you call the 14 capital days also had gone up. We would be trying to hit somewhere between 170 to 180 days moving forward, because now the Kambarnas will also be coming into the picture. We believe that somewhere around 170 to 180 days, I think, should be a stable state number.

Okay. Sir, for this cardiovascular segment, is it filed in U.S. and EU as well, or is it just for centering diluted markets?

So, this is an advanced intermediate, so we need not do any filings in Europe or U.S.

Okay, okay, okay. Okay, that's it.

Thank you.

Thank you. We take the next question from the line of Sajal Kapoor from Anti-Fragile Thinking. Please go ahead.

Yeah, hi. Thanks for the follow-up. Krishnaji, one for you probably is regarding the conversion of EBITDA into operating cash. The trajectory has somewhat shifted post-COVID. So, inventory days have been running at close to 200 days for two years now. Is that a deliberate buffer given the backward integration model and positioning Supriya as a USFB-approved alternative to China? Or this is a near-term sort of a bleep and we can expect inventory days to normalize below 200 because obviously that will help converting more of EBITDA into operating cash flow to then fuel Patal Ganga and the other growth capex that we might be taking, you know, let's say in 2028 and 2029.

See, Sajar, what is happening here is that a lot of the products are having a higher volume, and because of the backward integration, you need to carry a higher inventory, and specifically the cardiovascular product as well as the liquid anesthetic. I think since the capacities are huge, even the intermediates, what we have to hold are becoming huge, and that is one of the reasons why the inventory levels are also up. Of course, of the rest of the inventory, there is also Ambarnath inventory, which is also getting added up already in the increase. I would attribute at least 10 to 15 crores from Ambarnath inventory already. So these two are increasing the inventory days as well as the amount in inventory.

No helpful. And finally, on the receivables from 72 days, we are now at 78 days. It's a slight upward jump, not massive, but how do you see receivables going ahead?

No, I am not much concerned on the receivable side. We will be able to maintain between 80 to 85 days, even at the worst of times. I think a major amount of sales were, I mean, the receivables were of the last two months. So that is why the receivable days have also gone up a bit. I don't think that would be a concern. And see, like, as long as we have our controlled substances, that we do take amounts in advance, I am not much concerned. Might be on the ambatnat side, once it drops up, we will have to see how the things span.

No, that's all. That's all from my side. Thank you.

Thank you. We take the next question from the line of Sanjay Kumar from iThoughtPMS. Please go ahead.

Yeah, thank you for the follow-up. Satish, sir, question to you. So on contrast media, can you explain some competitive advantages that we have managed to develop? Because the incumbent is a giant who works at, you know, large scale and massive efficiencies. And on a similar note, if you can explain the mobility of the semaglutide tablet, right? So you are saying it's patent protected. How is it different from, let's say, Novo's tablet?

Sorry, can you repeat that question? I was not able to get the first part.

Oh, the first one was on the contrast media. Can you explain some competitive advantages that we have managed to develop? Because the incumbent is a giant who works on large scale and efficiency.

Thanks. So there, I think the technology that we have and the process that we are working on is more cost efficient than whatever route is available in the market currently. Also, as a product, it's a very, very large molecule, and the market size of that product is growing year on year. So, there is definitely space for two, three large companies to participate and get a sizable share of the market, and that's what we are focusing on. We are not intending to be market leaders with more than 40-50% of the market share, but because the molecule itself is so large, and a lot of our existing customers across regulated markets have been prompting us to take up this product because they have very large requirements. So, I think that's the reason why we chose the product, and the process is something which would be a standout as compared to what is available in the market, which would result into better costing.

Can you explain on the process in terms of, let's say, iodine recovery or the usage? How are we on, when compared to the leader?

No, unfortunately, we will not be able to divulge a lot of information about our process because that's something that the R&D has worked on for the last two, three years. So, it's a very confidential thing to us as a company.

Okay. Then on the Novo's Hemaglutate tablet formulation for which we have a patent, how is it different from Novo's oral tablet?

I think the binding agent, what we have is different from what they are currently using, but it is still at a very, I mean, we are still doing a lot of research on that. We have filed the patent, and we have, in fact, approached Novo Nordisk also with this, because the formulation that we have has better absorption as compared to what is available on the market. So, that is how it is different.

Wow. Okay, got it. Second, squeeze in one more. On CVS, we were doing five steps so far. Eventually, we wanted to get to eight steps. So, where are we in that backward integration process for the Kadya Vasco product?

So, at this point, we have already gone to full backward integration because when the volume scaled up, we were waiting for the volumes to scale up. Now that the volumes have scaled up, we have already fully backward integrated.

I got it. I think that's it from your side. Thank you and all the best.

Thank you.

Thank you. Ladies and gentlemen, due to paucity of time, we take that as the last question and conclude the question and answer session. On behalf of Supriya Life Science Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.