Sai Life Sciences: Scaling Peptide Capabilities

is actively aligning capital expenditure to target high-growth modalities, including macrocyclic peptides, Peptide-Drug Conjugates (PDCs), and radiochemistry. It is launching a dedicated peptide development lab for a top-tier pharmaceutical partner, extending its center of excellence support, and planning an operational peptide manufacturing plant near Hyderabad by 2028. Aggressive Capacity Expansion: The company plans to deploy ₹1,100–1,300 crore in FY27, devoting 75% to CDMO operations and the remainder to discovery capabilities like AI. Manufacturing capacity will expand from 700 KL to 1,150 KL, starting with a 225-KL block in Q3 FY27. Additionally, new formulation capacity will cater to clinical trials up to Phase 2 under China+1 strategies. FTE Model Replicating Industry Best Practices: Utilizing the Full-Time Equivalent (FTE) model—similar to WuXi AppTec—the firm secures dedicated resource contracts for 65% of its engagements. Over the past 15 months, this framework helped convert pilot programs into long-term commercial relationships and added six late-phase molecules to its development pipeline. Accelerating Clinical Pipeline Visibility: Near-term earnings visibility is bolstered by a growing Phase 3 portfolio. One customer secured regulatory approval last fiscal year, two reach milestones in FY27, and another is expected in Q2 FY28, providing steady long-term commercial supply streams. Strong Revenue Growth with Premium Valuations: While Q1 FY27 revenue grew 12% year-over-year (led by a 26% surge in discovery services), performance slightly trailed guidance. Top-line momentum is projected to accelerate in H2 FY27. However, with the stock rallying over 70% YTD to trade at 37x EV/EBITDA FY28e, valuations fully reflect this medium-term growth.