Supriya Lifesci.

Supriya Lifescience delivered its strongest financial performance in FY25, achieving a record revenue of Rs. 696 crores, marking a 22% year-on-year growth. EBITDA surged by 51% to Rs. 261 crores, with a robust margin of 37%, significantly exceeding the previous year's 30%. This impressive growth was attributed to strategic pillars including capacity enhancement through Module E utilization, penetration into new geographies, and an expanded customer base.

The export business continues to be a primary growth engine, contributing 85% of FY25 revenue, up from 79% in FY24. Notably, LATAM's contribution more than doubled, surging to 22% from 11% in FY24. The company is also gaining traction in regulated markets like Europe and Brazil, fueled by new product registrations, and expects these regions, along with Southeast Asia (11% to 16% growth), to drive future growth.

Supriya Lifescience launched one new anesthetic product in Q4 FY25 and plans to launch three more in FY26, targeting a total API market size of nearly $1 billion across ADHD, contrast media, and cardiovascular segments. The company aims to be a 'China plus one' manufacturer, leveraging its backward integration and regulatory approvals to capture an immediate 10% global market share for new products, with a potential to reach 30-40% within 2-3 years.

The Ambernath formulation facility, a key component of the CDMO strategy, experienced minor civil construction delays but is now undergoing commissioning and validation campaigns. Commercial production for liquid anesthetics and oral solids is expected to commence by Q3 FY26, with meaningful revenue contribution anticipated in FY27. The facility, built with an investment of approximately Rs. 130 crores, has a revenue potential of Rs. 450-500 crores, though only a minimal Rs. 100 crores is factored into the FY27 revenue guidance.

For FY26, the company reaffirms its guidance of approximately 20% annual revenue growth. However, EBITDA margins are projected to be in the 33-35% range, a slight compression from FY25's 37%. This is attributed to the initial scale-up of newer products in semi-regulated markets, which typically have lower average selling prices compared to regulated markets, though absolute EBITDA and PAT are still expected to show good growth.

The new Module E-Block has expanded capacity by 500 KL, bringing the total capacity to over 1,020 KL, with full utilization expected by FY27. Backward integration has significantly progressed, reaching 72% in FY25 from 68% in FY24, enhancing control over vital inputs and optimizing cost structures, which is a key competitive differentiator for the company.

Working capital days increased from 124 to 158 days in FY25, primarily due to larger batch sizes in the Module E block and increased business volumes, leading to higher inventory and receivables. Management expects working capital days to stabilize around 150-160 days. Capex for FY25 stood at Rs. 162 crores, with a projected Rs. 75-80 crores for FY26, mainly for maintenance and specific projects like Rabo Block and formulations plant requirements.