The Hyderabad-based pharmaceutical company remains confident in maintaining growth momentum and driving value creation across businesses, he said.
“China (factory), as at date in the quarter, I will incur a loss of about a million dollars, but probably we will be able to reach breakeven between Q3 and Q4 and after that China will start to increase in the overall contribution to EBITDA growth,” Subramanian said in an analyst call.
China’s oral solid dose (OSD) facility continues to grow and is heading towards two billion capacity, supported by European approval of ten products and three local product approvals, he said.
The site is on track to achieve breakeven EBITDA in the third and fourth quarters of FY26, reinforcing its strategic importance to the global network, he added.
Regarding domestic operations, he noted that the company produced about 1,050 tonnes of Pen-G in the second quarter by operating at 40-50 percent capacity, representing an annualized production of about 6,000 tonnes.
“It is pertinent to note that yields are constantly improving. Like other companies, we have submitted our proposal to the government to implement the minimum import price, which will support the further increase in achieving 100 percent capacity utilization, raising production to 15,000 tons in a very short time,” he pointed out.
Subramanian said Europe continues to deliver robust sales growth, underscoring the strategic importance and operational strength of the region.
In the US, Dayton (plant) has moved to the commercial phase, with production underway, packaging approval secured and product launches planned from January, with the site set to contribute significant revenue in FY27, he added.
“Over the next two years, our growth will be driven by several key factors, including the expansion of our Pen-G facility, commercialization of the biosimilar portfolio and rapid progress in our biologic CMO (contract manufacturing operations),” said Subramanian.
The company expects continued improvement in its injectables business, driven by a sustained increase in supply, increasing shipments from the Chinese plant to Europe, additional contribution from a robust pipeline of new launches and the acquisition of Lannett in the US, which will further strengthen its market position, expand the portfolio and drive growth in the medium term, he added.
“We are confident that we will achieve our internal margin target of 20-21 percent for FY26,” he said.
Published on November 23, 2025
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