Supriya Lifescience Limited (SUPRIYA) Q3 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Supriya License Limited Q3FY26 Earnings Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. Anohan the conference over to Ms. Neha Salyan for her opening remarks. Thank you and over to you, ma'am.

Thank you, Iqra. A warm welcome to all the participants to the Supriya Life Science Limited Q3FI26 earnings conference call. The investor presentation and the financial results are available on the company website and on the stock exchanges. Please note, anything said on this call which reflects our outlook for the future or which can be construed as a forward-looking statement must be viewed in conjunction with the risk that the company faces. This conference call is being recorded and the transcript, along with the audio of the same, will be made available on the website of the company as well as on the exchanges. Please also note that the audio of the conference call is the copyright material of Supriya Life Science Ltd. and it cannot be copied, rebroadcasted, or attributed in press or media without specific and written consent of the company. To give you a brief business update and to take you through the results, from the management team, we have Dr. Satish Vah, Executive Chairman and Whole-Time Director, Dr. Saloni Vah, Managing Director, and Mr. Krishna Raghunathan, Chief Financial Officer. I would now request Dr. Satish Vah to provide you with a brief update on the quarter. Over to you, sir.

Good morning and warm welcome to all the participants. Thank you for joining us as we discuss the quarter three, financial year 26 performance of Supriya Lifesense Limited. I hope you have had opportunity to review our results and invest the presentation, both of which are available on the exchanges and the company website. On that note, let me walk you through our quarterly performance. Revenue for the quarter stood at Rs 206 crore, reflecting a growth of 11% of year-on-year, driven by robust demand across the product portfolio. Our focus on operational efficiency and high-margin niche offerings have delivered a 34.9% EBITDA margin and 24.1% PAT margin, reflecting strong execution. Exports continued to be a growth driver of the business, contributing 82% of 43 revenues. Within exports, the LATAM region delivered healthy growth, accounting for 24% of the revenues during the quarter, while North America contributed 6% with both regions, increasing their sales overall revenues. Complementing this, our background integration. Initiatives continued to advance during Q3, Financial Year 26, which was 74% of revenues, strengthening our cost structure and supporting sustainable growth. Turning to our recent launch pipeline, as communicated in our previous call, our product launch plans for the year remain on track. We have successfully launched a key cardiovascular product in quarter 3, financial year 26. Expected to contribute meaningfully in quarter 4 financial year 26. We also launched our ADHD product, which we expect to scale up over the coming quarters. Our liquid aerostatic product has been commercialized with steady monthly supplies underway. In addition, development activities for our contrast media product continue to progress as planned. The Ampanak facility is ready for capitalization. This is a key milestone for our CDMU segment. We will capitalize the site in Q4, financial year 26. Reflecting the completion of commissioning and readiness of the sustained commercial operations. We stand by our guidance of approximately 20% of annual revenue growth and the EBITDA margins of 33 to 35%, our progress towards The rupees 1000 crore revenue milestone for financial year 27 remains on course. Supported by a healthy pipeline, plant launches our 3-4 products each year and steady demand across core therapeutic segments including anesthetic, anti-diabetic, anti-anxiety, vitamins and ADHD. Looking forward, we remain focused on scaling our presence in regulatory markets and reinforcing our competition position through backward integration, strong regulatory capabilities, and a diverse product portfolio. This strategic strength combined with rising customer interest and execution discipline position us well to pursue long-term opportunities while continuing to create Thank you, sir.

Good morning, everyone. Let me take you all through the operational highlights of the quarter and nine months following which we will open the floor for questions and answers. For Q3-FI26, the company reported revenue from operations of Rs. 206 crores as against Rs. 186 crores in Q3-FI25, a growth of 11% year-on-year. EBITDA for the quarter stood at Rs. 72 crores as against Rs. 66 crores in Q3-FI25, a growth of 9% year-on-year, and EBITDA margin stood at 35% for Q3-FI26. Student Rs. 50 crores as against Rs. 47 crores in Q3 FY25, at margin student 24.1 for Q3 FY26. For 9 months FY26, revenue student Rs. 551 crores as against Rs. 520 crores in 9 months FY25, a growth of 8% year-on-year. EBITDA student Rs. 196 crores as against Rs. 193 crores in 9 months FY25. A growth of 1.7% year-on-year. Edicta margins were at 36% for 9 months FI26. At student rupees 135 crores, bat margins were at 25% for 9 months FI26. Our capex for Q3 FI26 student rupees 28 crores, whereas for 9 months FI26 student rupees 71 crores. This was mainly spent towards Ambarna facility. Going forward, we expect capex to close around rupees 15 crores for remaining of FY26. Primarily directed towards maintenance capex and certain small projects like rego block and other requirements in formulations planned. On borrowings, we would like to report that for the last nine months, we have not utilized any working capital limits except for letter of credits and bank guarantees. With that, we can open the floor for questions and answers. Thank you.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question can be assembled. The first question is from the line of Tadun Krishna, from iThot PMS. Please go ahead.

Thank you both, Ogo Suri. My question was on the cardiovascular product which we have launched. So, in the last con-calls, you said that we have 300 tons of visibility. Has that visibility changed or has the timeline changed? Any updates on that?

Hi, I'm Dr. Saloni Waag, and I'll be answering this question. Yes, we still have visibility over that 300 tons, and we are very confident that after the successful scale-up, which happened in quarter three, we will be able to start penetrating into that market and start getting the volume in the coming few quarters.

Understood. And second question was on the A21 site, which we have. So based on the past on-call, I understand that it will be primarily used for the protein scale-up. Has the use case changed or has any information on the capacities you can give me?

So, no, A21 is going to be used for two main purposes as of now. One is going to be the protein business that we have, and the other thing is, it's also a warehouse for some of our raw materials. As far as the protein project is concerned, we are making some progress on that, as it's a very new formulation in the Indian market. A lot of the formulators are still doing R&D on that, which is expected to be completed in the next three to four months. Once the R&D part is cleared, I think then the accumulators would be ready to start buying commercially and launch their products. Other than the domestic Indian market, we have also made some progress in the export market. We have supplied our samples in Australia and some Southeast Asian countries like Philippines, Malaysia, Singapore, from where we are getting good traction. So all in all, I would say the protein project, we are making progress, but for you to see any significant revenue contribution, that would still take a couple of quarters.

Got it. Got it. And this is the last one. Any timelines for the Islam Bay site you can give me?

For the Islam Bay site visit, I think we are still in the phase of finalizing the blueprint and what all will come up there. I think in another 9 to 12 months, we will be able to give more light, but maybe our chairman can share some more information.

See, I'll give you some more information on that. As you know that... Every plot which normally everybody buys, MIDC says that you go for environment clearances. We have specifically denied when we have taken the land and we have said MIDC itself will go and they will take the environment clearance. Now, they have taken two and a half years to get the EC. On the 1st of January, we got the possession. After hearing from them that the EC is granted and it's available on the portal. So now, we are making the blueprint, then we will start working on it.

Understood. Understood. That is it for Mr. Thank you.

Thank you. Thank you. Before we take the next question, a reminder to all the participants that you may press star and want to ask the question. The next question is from the line of Ashish Uzgunlava from Invesc PMS. Please go ahead.

Yes, thank you so much for this opportunity. So just wanted to understand, we've been guiding for maybe around maybe 20% kind of revenue growth, and we still stick by our guidance maybe for the next year. If I look at maybe the 12 months that have gone by, we've had, the yield growth has been off and on. This quarter, it's about 11%, and since we had a higher base of margins, our profit growth doesn't seem to be there. So, how should we read it? Is capacity a limitation or demand a limitation that we are facing right now? Because 11% seems to be on a lower side on the growth.

So, we are still confident that we will be able to achieve our 20% guidance for this financial year, and a large part of that would come in quarter four. In quarter three, what has happened is two main things. One is that some of the new launches that we did in quarter one, quarter two of this year, we were just trying to scale up that. So, increasing of capacity, scale-up in terms of back size, going in for the regulatory approvals, all that activity we have done in the first three quarters. So, definitely a larger contribution from these newly launched products you will be able to see in quarter four. Also, in quarter three, post-15 December, considering export markets are the largest for the company, 84% of our revenue comes in from export and specifically from markets like LATAM and Europe. Post-15 December, all these markets go for holiday. So, a lot of the shipments which were intended to happen end of December have now gone into quarter four. So, there is a slight impact of that as well. And because we have a good visibility on the order book for quarter four, we are very confident that we will still be able to manage the 20% revenue group.

Okay. So quarter four seems to be going to be pretty decent to cover up for everything. That's what the expectation is. And to understand on the margin bit, because we maintained a tight band of 33, 35% kind of a number. Historically, we had, I mean, we've been tracking your company since the IPO. So there was a loss of a Chinese customer and then we had a. Profit, profitability fall and sales also. So nothing in the environment that suggests right now that any sort of that kind of a risk might come up, right? I mean, there's no kind of inventory overhang with the customers and something that on that front, I wanted to understand.

No, nothing like that. I think for the last two years, we have been consistently riding 33 to 35% margin. And whatever dip you're seeing from the historical margin numbers is predominantly because of addition of new products. Then you typically introduce any new product into the portfolio. The first scale-up will happen in semi-regulated markets, where the margins are slightly lower as compared to when it scales up in a regulated market. And because we have been actively doing that for the last one and a half years, I think that's the only reason why the margin has sort of normalized

that 30% to 35%.

We would like to write the same.

Okay, lastly, with this EU trade deal and other deals that have happened, does anything change for us on the positive or negative side as far as opportunity size is concerned?

As far as Super A is concerned, there is no change because in pharma, there is no much change in FTA. And let me tell you, FTA, whatever we have, FTA will come only after one year or completion of the clearances from the Parliament of the EU and the Indian Parliament. So you can understand, it will take some time. It's not that fast, you know. Every FTA had its own digestion period. It's roughly around about one year, two years. So, based on the FTA, you know, Superior Life Sciences doesn't do business, let me tell you, because PAMA is a different area. It has nothing to do with FTA.

Okay. Okay. Okay. Thank you, sir. Thank you so much. Thank you.

Thank you. The next question is from the line of Nishita from Sapphire Capital. Please go ahead.

Yes, good morning. So, I just had a follow-up question on the previous participant. You mentioned that we will still be able to achieve the 20% annual revenue growth for FY26. So, to do that, we will need 284 crores of revenue in Q4 FY26. So, are we confident that we have that? And you mentioned that we have a good visibility in order book terms. So, if you can quantify the order book, that would be great.

Madam, we are confident. Do you have something in your mind? Be specific.

No, so order book, if you can quantify the order book.

As per as manufacturer is concerned and the industry for about 40 years, we are very well confident that we will achieve.

We will not be in a position to quantify our order book, but we would confirm that we have some visibility as to how we will be able to achieve this target. So, we are confident, like our chairman said, we are still confident that we will be able to achieve our revenue guidance.

Okay, understood. And my next question is, you mentioned that we can get to 1000 crore revenue in FY27. So, can you, like, what would be the growth drivers for us to reach that 1000 crore?

A couple of growth drivers that will contribute. The first one would be the scale-up of our existing product market and regulated market because we are registering a lot of CEPs and USDMS for our existing portfolio as well. The second would be the new launch of the product. Every year we intend to introduce at least three to four new products into our portfolio. And if you look at the first three quarters also, we have successfully introduced about three new products in the portfolio. So that I think would be the second area of growth for us. And the third area of growth would be our new facility in Amvarnath. So, we have newly launched our finished formulation facility in contract manufacturing in Amvarnath. We expect to commission this facility in quarter 4 of this year. So, I think revenue contribution from that facility should also start in next year. So, I think these are the three main areas where we can expect growth coming in.

Right, okay. And if you could just reiterate the CAPEX numbers, I missed that part in the opening remarks.

For nine months under, the CAPEX was around 71 crores. I think if… Is that fine with you?

Yes, yes. And with Amrana, specifically, what was the total CAPEX for this?

Ambaranath would be somewhere in the range of 140 to 160 crores. I think once we do the final capitalization, we will be able to give the final numbers. Yes, probably by Q4 we will be able to give them.

Okay, okay, understood. And do we have some visibility on how much revenue can we generate from the Ambaranath facility?

It will be easily 2.5x.

Okay, so the answer, turn, you're expecting is 2.5x.

Yeah, yeah, yes.

Okay, okay, I'm just, I'm just.

Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and one. The next question is from the line of Nirali Shah from Ashika Stock Services Limited. Please go ahead.

Thank you for the opportunity. My first question is on the DSM project. Non-pharma volumes have started while pharma qualification is still underway. So, should we expect pharma applications to become the dominant revenue contributor during FI27? Or is that more likely a FI27 kind of a transition?

So we have actually successfully completed our pharma validation last month. So some actually commercial volume of pharma will start as soon as quarter four of this financial year itself. But if you're looking at a meaningful contribution, because in the past we have said that, you know, DSM project at a mature stage would contribute above 60 crores of revenue. For that significant contribution to come in, it would be FY27. But some small volumes they have already started taking for seeding of their pharma customers.

So, I mean, the first half of 27 or more of towards the second half of 27?

I would say second half of 27.

Okay. My second one is on the CAPEX. So, FY26 did see elevated CAPEX. Should we think FY27 CAPEX to be reverted close to the maintenance levels of the 40 to 50 crores? Precisely for the FY29 growth roadmap that we are looking forward to, would it include a step up towards 80, 90, 100 crores over the next 12 to 18 months?

See, what we are thinking is, yeah, of course, there will be maintenance caps, but I think we also need to do some groundbreaking for Patal Ganga. I think that is going to be there. I think that we will have another 40-50 crores to start with in the coming year. Because if you look at FY29's viewpoint, we might need at least one facility, either a formulation or API facility from Patal Ganga. That we will take a call. We will start with the utilities block, the groundbreaking of the utilities block first, and once we know what sort of a demand we are getting, either on the umbrella side or if there are pressures from Lotte. So, based on that, we will ensure that we will have an API or formulation plan coming out. First, from Patal Kanna. So, that would be the plan of action at this stage.

Got it, got it. So, just last year on the P&L perspective, roughly how many quarters after the first commercialized commercial dispatch should Amarna turn at a size 11?

We will have it even a small revenue coming in at Q4 itself and meaningful revenues to come from next financial year.

So, EBITDA positive?

It might not be immediately EBITDA positive. EBITDA positive, we might have to say somewhere around Q3 of FY27. I think that is something which we are looking at at this stage.

God, okay, sir. Okay, sir. Thank you.

Thank you. The next question is from the line of Shyam Sampar from MSC Capital Partners. Please go ahead.

Hi, good morning. I wanted to ask on the ATS order book for FY27. The MIP protects us, but are we seeing any risk of customers shifting to ATS 9 and bypassing the ban, like in the context of formulators giving supply security and locking an annual volume contract? Are they doing that today, or are they still keeping their options open? If you can confirm if you have successfully commercialized. Sorry, that was the first part, actually.

So, regarding what, I was not able to hear you clearly on the first part.

Can you ask a question? Yeah, am I audible now?

Yes, you are audible.

Yeah, the ATS-8 order book for FY27. I was saying that the MIP protects us, but are we seeing any risk of customers shifting to ATS-9 for bypassing the ban?

So, as of now, the MIP, what the government has done, frankly, for us, it's not of much use because it is only applicable for formulators who want to sell their product in the Indian market. Most of the people that we are talking to are selling their finished formulations in the export market as well as the API export. API is done in the export market. So for us, anyways, you know, that is not of a very large value addition. But for us, what works is that we have a fully backward integrated process. And even at the current Chinese prices, we are able to compete and we are able to get very good market traction from some of the large users. We are very confident because the trials are already done at the large end user site. So with that being done and the quality rating approved, the order book what we have for FY27, we are very confident that we'll be able to get a large chunk of that.

Okay, so by order, do we have supply security with the customers locking in annual contracts with us, or are they keeping their options open?

So, we don't have firm annual contracts, but we already know what is the annual consumption of each and every end-users, and most of them are in the, you know, signing stage, where they are giving us volume commitment for the next year, so we have identified that, and work is in progress in that direction.

Okay. And earlier, last year, during the plant visit, we had also discussed about the ATS3 to ATS5 reaction at scale at the facility that we have. So, are we currently running this backward integration to feed our ATS8 production?

Yes, as far as R&D is concerned, we have a fully backward integrated process developed, and we have already identified where we will be doing the ATSC to ATSC conversion. So, I think commercially that process should start maybe by next month itself.

Okay, all right. And for the ATSC that we have, how much is the domestic market adjusting to this new pricing? Because, like, are we seeing that the formulators have accepted the new import price levels of 105 plus dollars?

So not yet. I think there is still a lot of ambiguity in the end users for accepting this price. And I don't think it has come into full effect as of now. But for us as a company, like I mentioned, you know, the large users that we are targeting are mainly taking this product for export purple. So that's not anyways our targeted market. And the targeted market, what we have, we are very confident that we'll be able to start seeing the commercial right from next year.

Okay, all right. And on the EU CGMP inspection at Ambarnaath for December month, has the audit been completed?

No, we were following up with the EU authority for the audit date. We are fully ready and we have been following up. We are expecting now that to happen in the next three to four months because they gave us the email saying that because of, you know, low manpower, they were not able to give us immediate dates. But we can expect the same happening in the next three to four months. So I guess by quarter one of next financial year, we should be through with the EU audit.

Okay, all right. And on the core portfolio with the riboflavin production, now that it's moved to the new dedicated block, we have more free-up capacity in the legacy blocks of ABCD. So how are you planning to utilize this capacity for FY27?

So, Reboslavin was always in a dedicated block because it's a yellow product and most of our other products are white in color. So, it required dedication from day one. So, it already had a dedicated block, but the capacity of that block was much smaller. So, now it has moved into a new block where we will be running the DSM as well as our regular campaigns patternally. Previous to that, we were running them alternatively, because of which we were not able to cater to the complete demand of the customers. But with that, moving into the new block, now we can run both campaigns parallely. Now, this block, once it is completely freed up, we still believe it would take about six to seven months for us to completely free up this block, because there are a lot of regulatory implications as well. We have a CEP for this product. But once it is completely freed up in the next six to seven months, it would be utilized for the cleanup of some of the new products.

Okay, what products are we looking at? Any of the growth molecules?

I think from our existing portfolio, but some of the new launches, what we are planning to do, maybe we will be allocating that capacity to some of the new molecules.

Like ADHD and those products?

Yes, like ADHD, we do have an aesthetic product summing up. We do have contrast media products summing up. So for some of these products, that block would be utilized.

Okay, all right. And in Europe, we are seeing that the growth in Europe was slower. And I just wanted to understand what was the reason because we also have... We see the backward integrated number of drivers that we have. They've gone up from 18 to 20, but the absolute revenues have also come down this quarter. So just wanted to understand on both these points, what are the factors that take?

We haven't seen any dip in Europe. The slight minor dip that you see is only on account of the shipments not going post 15th of December because most of Europe was shut for New Year's and Christmas holidays. So as such, there is no loss of business. Everything that we were not able to ship in that last 15 days of December, you would be able to see in the last quarter. So as such, we are not seeing any decline in the business in Europe market.

Okay, and what about the backward-integrated products part? We have gone up, but is it like the same factor?

We have today almost 74% of the total revenue or the total products that we do, we are fully backward-integrated, and that number will go up as soon as some of the new product commercial launches are completed, that number would definitely go up in the, I would say, you know, between 80% to 82%. That should go up pretty quick.

Okay. Understood. My question was around... Sorry to interrupt, Mr. Sampar.

Sorry to interrupt. Please rejoin the queue for more questions.

Sure. Thank you so much.

Thank you. A reminder to all the participants, if you wish to ask a question, please press star and one. The next question is from the line of Nikhil Upadhyay from Simple. Please go ahead.

Yeah. Hi. Good morning. Thanks for the opportunity. Just two questions. One is on the formulation CMO, which we were doing, when do you see the commercialization to begin, and where are we in terms of the validation and all? And that is one. And secondly, like you mentioned, we've launched three products this year, and we had mentioned that with the R&D, Our pace of new product launches should increase. In the next two to three years, these new products should contribute to what, like 10-15%? What's your sense of what would be their revenue contribution?

So, to answer to your first question on Ambarnaas, the facility, we should see commercial revenues from quarter four of this financial year. But like my CFO explained earlier, for its full impact to come in, it would only be the next financial year. But some couple of, you know, some few revenue you can see from quarter four itself. Now, the second part of your question.

New product contribution.

This year, we have successfully launched about three products in the first three quarters, and we are expecting to launch our post-contrast media product in quarter four. We expect the same trend to continue. We don't want to introduce, you know, eight, nine, ten products, because R&D, we still are focusing on new molecules, as well as contract manufacturing opportunities. I think three to four products is what we are targeting for the next two to three years also. In the next 3 to 4 years, new product contribution would be about 10%. That is what I think, because for any new product also, it takes about 2 to 3 years to scale up in regulated markets. So, 10% is what we are targeting in the next 2 to 3 years.

Okay, and last question. See, we had a target that CDMO, CMO should contribute 20% of our revenue. And I think we've been discussing that, we've been talking, and there have been inquiry levels. How confident do you see of reaching that 20% contribution from CDMO, CMO pipeline? Is the pipeline strong enough or any sense you are getting?

So, one correction is that we have said that 20% would be a combination of new products plus CMO, CDMO. It's not just CMO that will contribute 20%. So, a combination of the new products what we are launching plus CMO, CDMO would be about 20% in the next two years. And we are very confident because the CMO major business would come in from the Ambarna facility on finished formulation. And we already have a lot of visibility on some of the first phase launches, which are the liquid anesthetics. So we are very confident we will be able to get that kind of energy.

Sir, I just want to say something on this. You have not, people have not understood the business of Supriya. See, we are... Confident to have the product from China. We don't fight in India at all. Now, suppose an aesthetic product has a market of 2.5 billion and there are only 3 plants in China which are non GMP plants. Do you think that we will not get the opportunity because we are UGMP, we are USFDA? So, if you are a customer, you will definitely switch over immediately to a regulatory side or you continue with China on price. Correct. So, you must understand this is the revenue pattern because we don't do the products where we keep on fighting with Indian manufacturers. We don't like that at all. We always feel good to have the products where China dominance is there and we try to take the business from China and that too also from backward integration. Further, we do forward integration also. So, in anesthetic, we are doing the same thing.

Sure, sir. Thanks, sir. Thanks for the explanation. I'll come back in.

Thank you. Thank you. The next question is from the line of Nirmam from Unique, PMS. Please go ahead.

Yeah, thanks for the opportunity. The first question is on the regulatory filing.

Sorry to interrupt, Nirmam. Can you please speak a little louder?

Yeah. Am I audible now?

Yeah, please go ahead.

So, on the regulatory filing, we were targeting to file Trevofurain and CVS products, the DMS, in Q3. So, have we filed those?

Yes, we have. We have successfully filed for US DMS as well as CEP.

Okay. And secondly, again on the CMO part of our business, so, you know, we were expecting two, three more products. So, any update on that?

No, mainly, like I said before also, on the CMO front, the major contributor is going to be on the Finnish formulation side from Ambarnaath. And this site will be commissioned in quarter four. We were expecting the EU audit to happen in quarter three, like I said before, but unfortunately, because of manpower limitations on their end, they were not able to allocate the dates to us. I think for us, regulatory approval for Ambarna's site is very, very important so that we start gaining the traction of volume in regulated market. And until and unless that does not happen, revenues will not come. Also, whatever CMO revenue we are expecting would only come into full effect from FY27.

Okay. And the FD audit will be forced at all, right?

For the Ambarna facility, yes. I think first we are targeting is the EU audit because for most products what we are launching, the larger market is in Europe. Once the EU audit is complete, we will then target for the USFDA audit for Ambarna facility.

Okay. That's it, Ambarna.

Thank you.

Thank you. Thank you. The next question is from the line of Karan from Invexa Capital. Please go ahead.

Hi, ma'am.

Hello. Yes. Hello, have you heard ma'am? Yes, yes, you are audible.

So my question is largely on the GLP side. So we were contemplating to enter into the fill-finish side of the GLP. So where are we in that business or on that plan?

Yes. So, like I said, you know, this is going to come from our finished formulation facility in Ambaranath. We have not developed the API in the Lotte site, but our main focus is on the finished formulation on the injectable side as well as on the tablet side from Ambaranath. I think in terms of development, we have already completed that validation batches are in progress for the injection as we speak. And once the approvals for the facility come in, the regulatory approvals, we can start seeing some volume traction in some of the markets where the product is not under patent. We are targeting markets like Russia, Middle East, where we are seeing some volume and we are seeing a lot of inquiries from these markets.

Okay. And secondly, on the cancer detection kit, the product which we had, so where are we in terms of light?

I approval because it's a novel product. The innovator, the lady who owns the patent, she's still in discussion for the drug approval because it is classified under, you know, it's also part of it is a drug and part of it is a medical equipment. So there is an approval which needs to go through. She's still in conversation with the authority for the approval. I think once the approval is done, then we will start looking at the commercial viability of the product.

And they are also the same situation like EU, there is no new recruitments.

Oh, Chris, they are not doing anything.

And lastly, on the CDMO, the CMO developed the project pipeline. So beyond what we had discussed in the earlier call, where are we in terms of new contracts?

So, we do have a couple of large contracts under discussion. I'm very hopeful that in the coming few quarters, we'll be able to announce some. We are still in the term sheet signing kind of stage.

Okay. Okay. Thank you.

Thank you. The next question is from the line of Dheeraj Kumar Ruddy from Alfa Square. Please go ahead.

Hello, am I on board? Yes, yes. Sir, I just wanted to understand if this quarter was in line with our expectations or is there any spillover? Sorry to interrupt, Mr. Ruddy.

Your voice is muffled. Can you use your handset, please?

Hello, are you on board?

Yeah, please go ahead.

I just wanted to understand if this quarter was in line with the expectations or is there any spillover where we are, like where the customer is actually taking the inventory in the fourth quarter?

No, like I said before also, you know, the quarter is not in line with our expectation, mainly because of, you know, the last 15-20 days of December not being operational and a lot of customers not being available to clear shipments on their side. So, whatever last 10-15 days we were not able to ship all, that will come as a spillover in quarter.

I understand. That's helpful, ma'am. And just wanted to understand on the CDMO side, you know, I understand the CMO opportunities which we are working on, but on the CDMO side, what is the work currently going on? Because I understand that there is a lot of gestation period where we have to incubate like an R&D team. It takes like three to four years because, you know, which phase, I mean, what is the thought process there? I mean, are we going to enter into, like, phase two, phase three kind of R&D and work with, like, some big pharma and then move into, like, commercial stage, or how does it exactly work?

Like you rightly said, the gestation period for CDMO activities is pretty long. We have actually just, you know, successfully set up and brought into operation our Ambarnat R&D. So the Ambarnat R&D is working on two fronts. One is the finished formulations R&D as well as the API R&D. We just completed the full setup just a couple of months back. And we are now targeting specific customers, specific markets where we would want to be in. Innovator tie-up is definitely one area which we have not been in in the past, but something that we intend to do in the near future. So, a lot of effort has been going on in that direction. Digital teams are focusing on that, and even at the senior management level, we have a technical lead who is focusing on these kind of opportunities. So hopefully something will come up in the next couple of quarters, but as of now on the CDMO front, we have nothing specific in our hand. Most opportunities what we have are more on the contract manufacturing side.

I'm sure, but any thought process around which are the areas we will be working on? Is it peptides or is it, is it, so just some thought process there if you can share like it would be.

So, I think a firm strategy on this, we will be only able to sort of put out in the public domain in the coming few quarters. As of now, because of the opportunities in hand, our major focus has been on contract manufacturing because that is a low-hanging fruit for us and that can give us commercial benefits immediately. So, a lot of the strategy and senior management bandwidth has been focused on that. But once I think in the next couple of quarters, once we have some kind of a strategy on CDMO, I think I'll be in a better position to share it with you.

Good morning, everyone. Got it, sir. Got it. That's helpful. My last question is, ma'am, I saw in one of the interviews with ET now, I think you said, I think we are in a much growth phase where you have said, I think, in the next five years, we should be seeing like very good growth momentum. Do you think, I mean, is this like, I mean, not towards 20-25% or you think somewhere at 20%? I just wanted to understand, I know, like, exact outlook is not required, but I just wanted to understand the management's optimism in terms of how they can execute this.

With the current product pipeline that we have, what we are targeting, with the amount of TAPEX that we are putting in for capacity enhancement, as well as setting up new R&D, definitely there is a lot of potential for the growth to be upwards of 20%. But having said that, all the products have to go through the regulatory approval, so we have to be a bit conservative on the regulatory side. We are very confident that 20% growth is something that, you know, we'll be able to achieve. And if all the products, as per the management's expectation, are able to achieve their full potential, the growth can be even higher than that.

That's helpful. Thanks. Thanks a lot.

Thank you. The next question is from the line of Aditya Pal from MSI Capital Partners. Please go ahead.

Hello. Hello, Audible. Yes, you are Audible. Please go ahead. Yeah, thank you so much for the opportunity. Just had a couple of questions. One was on ATS. Thank you. What I was looking at is that the market size of ETS is close to 600 tons, that is, India imports close to 600 tons of ETS-8, and there's no sizable player other than Supriya, from what I've understood. So, is it fair to say that we can capture this large market quite easily?

Yes. Definitely, we are one of the largest players and in terms of the capacity also that we have set up, plus the level of backward integration that we have for this product, we are setting up ourselves for becoming one of the leaders in this product.

And something to say, no, no, just this, I have something to say. We are not at all interested for taking the entire share. There should be a healthy competency. There should be. Because what happens now? Everybody is not looking for a quality and looking for a continuous supply. People are taking us for a ride for price. So wherever the price comes, we drop. So, we have decided At least as a chairman I have decided that we will have only 250 to 300 tons where we will cater the customers who are choosing to have a quality material from the USFDA and EU plant. That's my decision. So there will be a complete competition and that competition let them continue with that. We don't have any problem. No, this actually makes a lot of sense.

This actually makes a lot of sense because you're targeting that correct profit pool. So, and Saluni, is it fair to say this 250 to 300 tons can easily be realized in FY27 and it doesn't from Q4, FY26 to Q4, FY27? Can we see that the entire 300 tons of revenue could be realized in our books?

Yes, I think with the current order book that we have and the strategy, like our chairman explained, this 250 to 300 tonne we will be able to fully get in XR27.

Wonderful. This last point, when you were talking of 1000 crores for the last couple of quarters, is the ATS-8 an upside surprise for us? Have you modeled? Have you?

So some part of it is already modeled into our 1000 crore because we had considered some part of the revenue coming in from new products. Of course, the full impact of it, if the product volumes were to be at that 250, 300 tons, then that full impact of it is not modeled in our 1000 crore. But some part of it, yes, we are already considered.

So, it is fair for me to say that 1,000 crores plus the optionality that we have with Abhanath coming in plus ATSA. That is something that can surprise us on the upside.

So, what I would say is that, you know, in the 1,000 crore, like I said before also, we had built in some part of CMO and new products. So, some part of Amvarnath as well as some part of the new products was already considered in that 1,000 crore. Looking at the large potential of the new product, what we have launched in this financial year, yes, there is always a possibility of an upside. But going back to regulatory approvals, as soon as the regulatory approvals are in our hand, we will be able to confidently guide on how significant that upside could be.

Understood. Understood. Now, this makes a lot of sense. If I may just ask one last question, this is a bit on the strategy aspect. So, we are very strong in chemistry. Are we thinking of talking to larger... So, you can see larger players, as in larger pharma players outside, what developing that does, but more in terms of getting into the either KSM supply chain or advanced intermediate supply chain, and not directly trying to jump into an API supply chain.

Yes, we are. We are actually after the DSM Fair Minutes partnership, it has sort of opened up doors for us to talk to a lot of the larger companies because if you have established confidence in terms of quality and regulatory with one large pharma, it will automatically open up doors and opportunities with the other companies. So definitely we are talking to a lot of large companies where we want to be in a partnership with them for either advanced intermediates or for the API supply. Hopefully one or two we should be able to announce soon.

Understood, understood. Thank you so much, and wishing you and the team all the very best.

Thank you so much. Thank you. Ladies and gentlemen, due to paucity of time, we will take that as the last question for today. On behalf of Supriya Lifetimes Ltd, that concludes the conference. Thank you all for joining us today and you may now disconnect your line.