Supriya Lifescience Limited — Q3 FY26 earnings call

Call held 10 Feb 2026

Management summary

Supriya Lifescience reported a solid Q3 FY26 with 11% YoY revenue growth to ₹206 crores and a strong 35% EBITDA margin. Exports remained a significant contributor, and new product launches are progressing. The Ambernath facility is set for capitalization in Q4 FY26, though its EU inspection is delayed. Management remains confident in achieving its FY26 revenue guidance and long-term targets, emphasizing strategic focus on regulated markets and backward integration.

Highlights

  • Revenue from operations grew 11% YoY to ₹206 crores in Q3 FY26, driven by robust demand.

  • EBITDA margin maintained at 35% for Q3 FY26, reflecting strong execution and focus on high-margin niche offerings.

  • PAT margin stood at 24.1% for Q3 FY26.

  • Exports contributed 82% of Q3 revenues, with healthy growth in LatAm (24% of revenues) and North America (6%).

  • Successfully launched a key cardiovascular product and an ADHD product in Q3 FY26, with a liquid anaesthetics product also commercialized.

  • Ambernath facility is ready for capitalization in Q4 FY26, a key milestone for the CDMO segment.

Concerns

  • EBITDA growth for 9M FY26 was only 1.7% YoY, despite 8% revenue growth, indicating some margin pressure over the longer period.

  • EU CGMP inspection for the Ambernath facility has been delayed to Q1 next financial year due to 'low manpower' at the EU authority, impacting regulatory approvals and market traction.

  • Ambiguity in end-users accepting new pricing for ATS-8 in the domestic market was noted.

Key financials

2 periods

Q3 FY26

  • Revenue
    ₹206 Cr
    YoY +11%
  • EBITDA
    ₹72 Cr
    YoY +9%
  • EBITDA Margin
    35%
  • PAT
    ₹50 Cr
  • PAT Margin
    24.1%

9M FY26

  • Revenue
    ₹551 Cr
    YoY +8%
  • EBITDA
    ₹196 Cr
    YoY +1.7%
  • EBITDA Margin
    36%
  • PAT
    ₹135 Cr
  • PAT Margin
    25%

What they filed

Q1 FY27: revenue up 31.0%, net profit down 31.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue166 186 184 145 200 +20%206 +11%277 +51%190 +31%
EBITDA65 66 68 52 73 +12%72 +9%98 +44%47 −10%
Net profit46 47 50 35 50 +9%50 +6%74 +48%24 −31%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

high confidence
  • Capex ₹28 Cr this quarter · ₹86 Cr (FY26) planned
    • Ambernath facility ₹71 Cr
    • Maintenance capex, Ribo Block, formulations plant ₹15 Cr
    Our capex for Q3 FY26 stood at INR28 crores whereas for 9M FY26 stood at INR71 crores. This was mainly spent towards Ambernath facility. Going forward, we expect capex to close around INR15 crores for remaining of FY26, primarily directed towards maintenance capex and certain small projects like Ribo Block and other requirements in formulations plant. On borrowings, we would like to report that for the last 9MA, we have not utilized any working capital limits, except for letter of credits and bank guarantees.
  • Debt Debt disclosed
    On borrowings, we would like to report that for the last 9MA, we have not utilized any working capital limits, except for letter of credits and bank guarantees.

Guidance & targets

Revenue

  • Annual Revenue Growth Revenue · FY26 · High confidence 20%
    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 4.

    — Saloni Wagh

  • Revenue Milestone Revenue · FY27 · High confidence ₹1,000 crores
    Our progress towards the INR1,000 crores revenue milestone for FY27 remains on course...

    — Satish Wagh

  • Ambernath Facility Revenue Contribution Revenue · Post-commissioning · High confidence 2.5x capital value
    It will be easily 2.5x of the capital value.

    — Krishna Raghunathan

  • DSM Project Revenue Contribution Revenue · FY27 (mature stage) · Medium confidence ₹60 crores
    But if you're looking at a meaningful contribution because in the past, we have said that DSM project at a mature stage would contribute about INR60 crores of revenue. For that significant contribution to come in, it would be FY27.

    — Saloni Wagh

  • New Product Contribution Revenue · Next 2-3 years · Medium confidence 10%
    I think 3 to 4 products is what we are targeting for the next 2 to 3 years also. In the next 3 to 4 years, new product contribution would be about 10%.

    — Saloni Wagh

  • CDMO/CMO + New Products Contribution Revenue · Next two years · High confidence 20%
    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.

    — Saloni Wagh

Margin

  • EBITDA Margin Margin · Ongoing · High confidence 33-35%
    I think for the last 2 years, we have been consistently guiding 33% to 35% margin.

    — Saloni Wagh

Product Launches

  • New Product Launches Product Launches · Each year · High confidence 3-4 products
    Every year, we intend to introduce at least 3 to 4 new products into our portfolio.

    — Saloni Wagh

Volume

  • ATS-8 Volume Volume · FY27 · High confidence 250-300 tons
    So Saloni, is it fair to say this 250 to 300 tons can easily be realized in FY27 and -- from Q4 FY '26 to Q4 FY '27, can we see that the entire 300 tons of revenue to 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 tons, we'll be able to fully get in FY27.

    — Saloni Wagh

Profitability

  • Ambernath Facility EBITDA Positive Profitability · Q3 FY27 · Medium confidence 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.

    — Krishna Raghunathan

What to watch in Q4 FY26

Q4 FY26 Revenue Achievement

Next quarter (Q4 FY26 results)
Current ₹551 crores (9M FY26)
Target ₹284 crores (Q4 FY26) to meet 20% annual growth

Why it matters

Meeting the Q4 revenue target is essential for the company to achieve its stated 20% annual revenue growth guidance for FY26.

So, I just had a follow-up question on the previous participant. You mentioned that you'll still be able to achieve the 20% annual revenue growth for FY26. So, to do that, we will need INR284 crores of revenue in Q4 FY26.

Risks & concerns

  • Delay in EU CGMP inspection for Ambernath facility

    medium

    The EU CGMP inspection for the Ambernath facility, crucial for regulatory approval and market access, has been delayed to Q1 next financial year due to 'low manpower' at the EU authority.

    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 3 to 4 months because they gave us the e-mail saying that because of low manpower, they were not able to give us immediate date, but we can expect the same happening in the next 3 to 4 months. So, I guess by quarter 1 of next financial year, we should be through with the EU audit.

    Management acknowledged

  • Ambiguity in market acceptance of new ATS-8 pricing

    medium

    There is still ambiguity among end-users regarding the acceptance of the new pricing for ATS-8, particularly in the domestic Indian market.

    So, not yet. I think there's still a lot of ambiguity in the end users for accepting this price. And I don't think it has come into full effect as of now.

    Management acknowledged

  • Regulatory approval timelines for new products and facilities

    medium

    The pace of new product scale-up and full revenue potential from facilities like Ambernath are contingent on timely regulatory approvals, which can take 2-3 years for new products in regulated markets.

    But going back to regulatory approvals, as soon as the regulatory approvals are in our hand, we'll be able to confidently guide on how significant that upside could be.

    Management acknowledged

Q&A highlights

6 direct
Cardiovascular product visibility and market penetration Direct
Yes, we still have visibility over that 300 ton, and we are very confident that after the successful scale up, which happened in Q3, we will be able to start penetrating into that market and start getting the volume in the coming few quarters.

Confirms continued visibility for a key product and outlines the timeline for market entry and revenue contribution.

Asked by Tarun Krishna

Isambe site development timelines Partial
For the Isambe 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'll be able to give more light, but maybe our Chairman can share some more information. ... 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.

Provides an update on the progress of a new facility, indicating it's in the planning stage after receiving environmental clearance.

Asked by Tarun Krishna

Confidence in achieving Q4 FY26 revenue target for 20% annual growth Direct
So, we will not be in a position to quantify our order book, but we would confirm that we have firm visibility as to how we'll be able to achieve this target. So, we are confident, like our Chairman said, we are still confident that we'll be able to achieve our revenue guidance.

Reassures investors about meeting the annual revenue growth target despite Q3's 11% growth, attributing it to strong Q4 visibility.

Asked by Nishita

Growth drivers for the ₹1,000 crores revenue target in FY27 Direct
The first one would be the scale-up of our existing product basket in regulated markets... The second would be the new launch of our products... And the third area of growth would be our new facility in Ambernath.

Clearly outlines the three strategic pillars for achieving the ambitious FY27 revenue milestone.

Asked by Nishita

Ambernath facility's timeline to become EBITDA positive Direct
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.

Provides a specific timeline for the profitability of the new Ambernath facility, which is a significant capital investment.

Asked by Nirali Shah

Delay in EU CGMP inspection for Ambernath facility Partial
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 3 to 4 months because they gave us the e-mail saying that because of low manpower, they were not able to give us immediate date, but we can expect the same happening in the next 3 to 4 months. So, I guess by quarter 1 of next financial year, we should be through with the EU audit.

Highlights a regulatory delay that could impact the timeline for commercial operations and revenue generation from the Ambernath facility in regulated markets.

Asked by Shyam Sampat

Q3 performance vs expectations and spillover to Q4 Direct
No. Like I said before also, the quarter is not in line with our expectation, mainly because of 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.

Explains the reasons for Q3's performance, attributing it to year-end holiday impact and confirming that delayed shipments will contribute to Q4, supporting the annual guidance.

Asked by Dheeraj Kumar Reddy

Strategy for capturing ATS-8 market share Direct
So, we have decided that we will have only 250 to 300 tons where we will cater the customers who are choosy, to have a quality material from the USFDA and EU plant. And there will be a competency. And that competition, let them continue with that.

Clarifies the company's strategic approach to the ATS-8 market, focusing on quality-conscious customers and specific volume targets rather than aggressive market share capture, indicating a focus on profitable growth.

Asked by Aditya Pal

2 min read 6 chapters

Detailed narrative

Q3 FY26 Financial Performance Overview

Supriya Lifescience reported a revenue from operations of ₹206 crores for Q3 FY26, marking an 11% year-on-year growth. This was driven by robust demand across its product portfolio. The company achieved a strong EBITDA margin of 35% and a PAT margin of 24.1% for the quarter, with EBITDA at ₹72 crores and PAT at ₹50 crores. For the nine months ended December 31, 2025, revenue stood at ₹551 crores (8% YoY growth) and EBITDA at ₹196 crores (1.7% YoY growth).

Export Performance and Geographic Focus

Exports continued to be a primary growth driver, accounting for 82% of Q3 revenues. The LatAm region showed healthy growth, contributing 24% of total revenues, while North America contributed 6%. Both regions saw an increase in their overall revenues. The company aims to scale its presence in regulated markets and reinforce its competitive position through backward integration and a diverse product portfolio.

New Product Launches and Pipeline

Supriya Lifescience successfully launched a key cardiovascular product in Q3 FY26, which is expected to contribute meaningfully in Q4 FY26. An ADHD product was also launched, with scaling anticipated in coming quarters. The liquid anaesthetics product has been commercialized with steady monthly supplies. Development activities for a contrast media product are progressing as planned, and the company intends to introduce 3-4 new products annually.

Ambernath Facility Update and CDMO Segment

The Ambernath facility is ready for capitalization and is a key milestone for the CDMO segment, with capitalization expected in Q4 FY26. Total capex for Ambernath is estimated between ₹140-160 crores, and it is projected to generate revenue at 2.5 times its capital value. Commercial revenues from Ambernath are expected from Q4 FY26, with the facility potentially becoming EBITDA positive by Q3 FY27. However, the EU CGMP inspection for Ambernath has been delayed to Q1 next financial year due to manpower limitations at the EU authority.

Backward Integration and Cost Structure

Backward integration initiatives continued to advance, contributing to 74% of Q3 revenues and strengthening the company's cost structure. The ATS-3 to ATS-5 backward integration process has been developed and is expected to start commercially by next month (March 2026). This focus on backward integration, along with high-margin niche offerings, supports the company's operational efficiency.

Strategic Outlook and Long-Term Targets

Management reiterated its guidance of approximately 20% annual revenue growth for FY26 and EBITDA margins of 33-35%. The company remains on course for its ₹1,000 crores revenue milestone by FY27, supported by new launches, existing product scale-up, and the Ambernath facility. The combined contribution from new products and CDMO/CMO is targeted at 20% over the next two years. For ATS-8, the company aims to cater to 250-300 tons for quality-conscious customers in FY27.

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