RPG Life Sciences targets Mexico, emerging markets to boost API exports

Company scouts for USFDA-approved assets; on track for ₹1,000 crore in revenue by FY28

RPG Life Sciences is doubling down on Mexico and emerging markets as it seeks to scale up active pharmaceutical ingredient (API) exports following the restoration of operations at its Navi Mumbai facility, Managing Director Ashok Nair said.

 

The API business, which contributed 13.5 per cent of the company’s sales in 2025-26 (FY26), grew 35.6 per cent year-on-year during the April-June quarter of FY27 as the unit returned to operations after being disrupted by a fire last year.

 

Exports account for around 85 per cent of RPG Life Sciences’ API business, with domestic sales making up the remainder. The company has a presence in Mexico and Canada but does not currently sell APIs in the US.

   

“We are doubling down on Mexico because of the strong position held by our APIs there. For one of the relevant markets, we control close to 75 per cent,” Nair told Business Standard.

 

Apart from Mexico and Canada, RPG Life Sciences supplies APIs to Japan, the UK, Vietnam and the Philippines, and is making inroads into some African markets.

 

The company is also evaluating acquisitions to expand its API business. Nair said it was looking at US Food and Drug Administration-approved assets, predominantly in India, but remained open to opportunities in other countries.

 

“We are closely monitoring the evolving geopolitical situation. In that context, we are open to any asset that can help us move forward strategically,” he said. The company scans and shortlists potential acquisition targets every month and will pursue a transaction if it finds an asset offering the right strategic fit and synergies, Nair added.

 

RPG Life Sciences expects APIs to grow faster and gain a few percentage points in the overall revenue mix over the next two years. While it does not disclose business-wise margins, Nair said margins across APIs, domestic formulations and international formulations were in a similar range.

 

The company aims to develop at least five APIs annually and has drawn up a three-year pipeline.

 

On track for ₹1,000 crore topline target by FY28

 

Domestic formulations, which contributed 68.9 per cent of FY26 sales, grew 14.8 per cent in the first quarter, compared with growth of 11.6 per cent in the Indian pharmaceutical market. Naprosyn, one of the company’s key brands, grew 16 per cent during the quarter and is targeted to become a ₹100 crore brand in FY27.

 

RPG Life Sciences recently launched the line extension Naprosyn ES in India and is preparing to launch an over-the-counter version of Naprosyn in Canada through Walmart.

 

The international formulations business has also tied up with a UK-based company to develop three products under a contract development and manufacturing organisation (CDMO) arrangement, with commercialisation expected within six months.

 

Nair said the company remained confident of reaching ₹1,000 crore in revenue by FY28, supported by domestic formulations, faster API growth, international expansion, new products and potential acquisitions.

 

Overall revenue increased 15.8 per cent to ₹195.7 crore in the first quarter, while earnings before interest, tax, depreciation and amortisation (Ebitda) rose 17.9 per cent to ₹48 crore. The Ebitda margin expanded by 40 basis points to 24.5 per cent.