SAI LIFE SCIENCES: INDIA’S CRDMO GROWTH STORY 🧬

SAILIFE The global pharmaceutical industry is increasingly outsourcing research, development and manufacturing. This shift is creating a major opportunity for India's CRDMO companies — and Sai Life Sciences is positioning itself to capture a larger share. Sai Life Sciences works with global pharmaceutical and biotechnology companies across drug discovery, process development, clinical research and commercial manufacturing. Its integrated model allows customers to work with one partner across multiple stages of drug development. And Q2 FY27 delivered healthy growth. Q2 FY27 consolidated performance: Revenue: ₹659 crore, up 23% YoY. EBITDA: ₹187 crore, up 20% YoY. EBITDA margin: 28%, compared with 29% last year. PAT: ₹98 crore, up 17% YoY. H1 FY27 revenue increased 17% to ₹1,213 crore, while EBITDA and PAT grew 19% each to ₹335 crore and ₹172 crore respectively. What makes the business interesting? Global outsourcing: Pharma companies seek specialised research and manufacturing partners. Integrated capabilities: Discovery, development and manufacturing create opportunities for deeper customer relationships. Long-term engagements: Successful projects can evolve into larger commercial manufacturing relationships. Capacity expansion: The company invested ₹621 crore in capex during H1 FY27 to strengthen its capabilities. The business flywheel: Drug discovery → Development → Clinical manufacturing → Commercial production → Long-term customer relationships. However, investors should monitor capacity utilisation, customer concentration, regulatory compliance, project execution and capital expenditure. EBITDA and PAT margins declined by one percentage point YoY, despite revenue growth. Sai Life Sciences is participating in a structural shift in global pharma outsourcing. The next test is whether new capacity translates into sustained revenue growth, stronger margins and healthy cash generation.