US revenue target: $400m by FY28, FY25 up 22%

Macro backdrop: cautious India outlook, uncertain global cues

India’s FY2025-26 economic outlook is being described as cautious but resilient, supported by domestic strengths even as global uncertainties remain elevated. The same context highlights that commodity price volatility, trade interruptions, and geopolitical concerns could weigh on growth. For export-facing sectors, such conditions can influence input costs, supply chains, and demand visibility.

Against that backdrop, the company’s latest disclosures focus on execution in the U.S. market, profitability improvements, and a roadmap that targets materially higher U.S. revenue over the next few years.

FY25 U.S. revenue crosses $191 million

For FY25, the company reported U.S. business revenue of ₹24,457 million (US$191 million). That compares with ₹20,078 million (US$143 million) in FY24, implying 21.8% year-on-year growth. The company also indicated that the FY25 U.S. outcome exceeded its outlook.

Alongside the U.S. performance, the company reiterated its longer-term ambition of reaching about US$100 million in U.S. revenue by FY28. In management commentary, the target is positioned as achievable through a combination of launches, controlled substance ramp-up, and portfolio actions such as relaunching products that have been dormant.

Quarterly U.S. revenue signals and what influenced performance

In quarterly commentary captured in the material, U.S. revenue is referenced in the US$10-73 million range. One disclosure notes U.S. market revenue of US$10 million, largely flat year-on-year, while another states US$11 million, up 7% YoY. A further reference cites US$13 million with 2% YoY growth. Across these references, the message is consistent that growth was modest in the period despite competitive intensity.

Management linked near-term performance and volatility to several operational factors. These included a delayed flu season, slower-than-expected quota allocations for controlled substances, and the strategic discontinuation of eight low-profitability products. The disclosures also mention intense competition in recent launches, which has kept pressure on growth in some products.

Portfolio actions: launches, market share, and product mix

The company reported it launched three products in H1 FY26, taking total commercialised products in the U.S. to 70. It also stated it ranks among the top three players in 37 products, and these products contribute almost 75% of its U.S. revenue. One cited driver of U.S. sales was Suprep, with a market share of 30%, alongside the launch of a product acquired from Endo.

Management commentary emphasised a deliberate shift away from lower-margin institutional sales. Profitability metrics were said to have improved significantly, with gross margins crossing 60% after the pivot away from low-margin business.

Pipeline depth: ANDA filings, approvals, and dormant relaunches

The company disclosed a pipeline of more than 230 ANDA filings, with 215+ approvals as of July (as stated in the material). It also identified 60 dormant ANDAs that are under various regulatory phases of PAS (Prior Approval Supplements) for source changes and cost leadership.

The plan is to relaunch these dormant ANDAs over the next three years to support the annual U.S. revenue objective of US$100 million by FY28. In an earnings-call Q&A, management attributed the path to higher quarterly run-rate to a combination of launching 60+ products over three years, scaling controlled substances once quotas normalise, and R&D programs delivering revenue in 12-18 months.

Guidance and capital allocation priorities

The company reiterated the U.S. business revenue outlook of about US$100 million by FY28. It also said ex-U.S. markets are expected to mirror the U.S. business size in about two years, supported by portfolio expansion and new customer additions.

Capex guidance was stated at ₹1,000-1,250 million for maintenance, with additional opportunistic investments in global product rights. The expected tax rate for the year was guided at 15%-18%. Management also indicated that focus remains on operating cash flow generation and continued debt reduction, with capex to be funded from internal accruals.

Debt and leverage: forex impact, but ratio improves

The company reported a ₹830 million forex-led increase in reported debt (converted from ₹83 crore). Despite this, it stated that the leverage ratio improved to 1.59x EBITDA. This is consistent with the broader messaging of prioritising cash flow and deleveraging while continuing targeted investments.

Other business updates mentioned in the material

Beyond the U.S., the disclosures include references to other regulated markets growing 9.2% to US$12 million. The material also includes a clarification that the “rest of the world” (other regulated markets plus growth markets) reached ₹100,300 million (₹10,030 crore) and that it has been growing at about 14% over the last two quarters.

Separately, the company’s stated FY25 targets included revenue growth of 12%-15% YoY, EBITDA of ₹7,500-8,000 million, net debt to EBITDA below 2x, and U.S. revenue guidance of US$175-290 million. The reported FY25 U.S. revenue of US$191 million slightly exceeded the stated guidance band.

Key metrics snapshot

Market impact: what investors will likely track

From a market perspective, the most measurable signals in the material are the FY25 U.S. revenue jump to US$191 million, management’s repeated reaffirmation of a US$100 million target by FY28, and the emphasis on margin discipline. Investors will also track whether controlled substance quota allocations normalise as expected, because management linked part of the growth path to scaling in that segment.

The disclosures also show a willingness to discontinue products that do not meet profitability thresholds, which directly ties to the claim that gross margins crossed 60% after moving away from low-margin institutional sales. Finally, the improved leverage ratio of 1.59x EBITDA, despite a ₹830 million forex-led increase in reported debt, signals that operational performance and cash generation are central to the near-term narrative.

Analysis: why the $100 million U.S. goal is framed as “steady”

Management commentary characterises the route to US$100 million as “very steady,” rather than dependent on a single step-change. The operational levers cited include a multi-year launch cadence (60+ products over three years, as referenced in Q&A), relaunching dormant ANDAs, and further R&D programs, including complex areas such as controlled substances and nasal sprays.

At the same time, the material repeatedly flags external events and competitive intensity as constraints, including delayed seasonal demand and tougher competition in launches. The company’s decision to drop eight low-profitability products and to emphasise sustainable margins suggests that headline revenue growth is being balanced against mix and profitability.

Conclusion

The company’s FY25 U.S. revenue rose to ₹24,457 million (US$191 million), up 21.8% YoY, and management reiterated the longer-term goal of reaching about US$100 million in U.S. revenue by FY28. The path outlined relies on product launches, relaunch of dormant ANDAs, controlled substances ramp-up, and continued focus on margins, cash flow, and debt reduction. Future updates will likely centre on the pace of U.S. quarterly growth from Q2 onward (as indicated in commentary), progress on relaunches and filings, and execution against the stated capex and tax-rate guidance.