Sai Life Revenue Reaches 659 Crore Rupees as Shares Hit 1,775 Rupees

Key Facts

Sai Life Sciences shares hit a record 1,775 rupees, rising 10.3% in Friday, November 6, trading after the company reported second-quarter fiscal 2027 revenue growth. Revenue from operations was 659 crore rupees in the quarter ended September 2026, compared with 537 crore rupees in the same period of the previous fiscal year, an annual increase of 23%. The stock thereby exceeded its previous peak of 1,697 rupees, recorded on September 9, 2026, according to a Business Standard report. Its advance came as Indian mid- and small-cap stocks were under pressure during the session. At 10:12 a.m., the stock was up 10% at 1,757 rupees, while the Nifty 50 rose 0.47% and the Nifty Midcap 100 and Nifty Smallcap 100 fell 1% and 1.6%, respectively.

The company’s results showed earnings before interest, taxes, depreciation and amortization (EBITDA) of 187 crore rupees, up 20% year on year from 156 crore rupees. But the EBITDA margin fell to 28% from 29% a year earlier, as revenue growth outpaced growth in operating profit. Net profit after tax also rose 17% to 98 crore rupees from 84 crore rupees in the year-earlier quarter. The net profit margin declined to 15% from 16%, meaning absolute profit growth came alongside narrower margins year on year. The indicators present a picture of accelerating revenue and higher profit alongside modest margin pressure compared with the previous period.

In its results statement, the company said performance was broad-based and that both its contract research and development (CRDMO) and contract development and manufacturing (CDMO) businesses recorded healthy growth. CRDMO includes the company’s drug discovery and development services, while CDMO covers development and manufacturing stages for clients. It added that client relationships are evolving from standalone projects into larger strategic engagements spanning discovery, development and manufacturing. The company said this shift broadens its participation with clients across multiple stages of the product development cycle. It presented this as part of the backdrop to simultaneous growth in its two businesses during the quarter.

For the first half of fiscal 2027, revenue was 1,213 crore rupees, up 17% from 1,034 crore rupees a year earlier. EBITDA was 335 crore rupees, up 19% from 281 crore rupees, while net profit rose to 172 crore rupees from 144 crore rupees, at the same pace. First-quarter revenue was 554 crore rupees, a 12% year-on-year increase, and the CRDMO business grew 24% at the time. The company also had 33 commercial molecules and 14 late-stage molecules in its chemical and pharmaceutical manufacturing pipeline that quarter. These figures place the second-quarter results within a first half in which the company recorded revenue and profit growth compared with the corresponding period.

The chief financial officer said the company still expects a stronger second half, supported by progress in its commercial development and manufacturing pipeline and the ramp-up of new capacity. He added: "We expect a stronger second half to continue, supported by progress in the commercial development and manufacturing pipeline and the ramp-up of new capacity." The company said its capacity and capability expansion program was on track, and that it invested 621 crore rupees in the first half of fiscal 2027. In trading, the average volume in the stock increased more than tenfold, with a total of 3.4 million shares traded on the NSE and BSE, according to Business Standard. The company had set its results call for November 6 at 11:00 a.m. India time to discuss quarterly performance and business.

Business Standard reported that PL Capital expects Sai Life’s revenue, EBITDA and net profit to grow at compound annual rates of 21%, 25% and 26%, respectively, over fiscal years 2026–2029. The report also said the stock was trading above the brokerage’s initial target price of 1,620 rupees per share, which it issued in October 2026. These estimates look beyond the current quarter’s results, while the stock’s move on November 6 remained tied to the second-quarter earnings announcement. The new high was recorded during a session in which mid- and small-cap indices fell, according to figures published at that time. Brokerage estimates remain separate from management’s outlook for the second half, which it linked to progress in the business pipeline and the ramp-up of new capacity.