Sai Parenterals Limited announced its financial results for the second quarter of FY27, reporting a 9% sequential revenue growth to INR 196 crores. The company also saw a substantial increase in gross margin to 47.5% from 40.9% in the previous quarter. This performance was driven by tighter inventory management and the integration of recent acquisitions, positioning the company ahead of its annual targets.
Sai Parenterals Reports Strong Q2 FY27 Performance
Sai Parenterals Limited has announced its financial results for the second quarter and first half of Fiscal Year 2027, highlighting significant sequential growth and improved profitability. The company reported consolidated revenue from operations of INR 196 crores for Q2 FY27, a 9% increase over the previous quarter. The first half of FY27 saw revenue reaching INR 376 crores, placing the company ahead of its projected pace for the full year target of INR 750 crores.
Profitability and Margin Expansion
A key highlight of the quarter was the substantial improvement in gross margin, which rose from 40.9% in Q1 FY27 to 47.5% in Q2 FY27. This expansion was attributed to effective inventory management and a decrease in raw material costs, despite the revenue growth. EBITDA saw a significant sequential increase of 67% to INR 41 crores, with an improved EBITDA margin of 21.1% compared to 13.7% in the prior quarter. Profit after tax for Q2 FY27 stood at INR 10.5 crores, marking a 33% growth.
Strategic Acquisitions and Integrations
The company detailed the deployment of its IPO proceeds, completing the acquisition of a 60% stake in Saicriti Pharma for INR 83.83 crores and a 60% stake in Prathyak Laboratories for INR 15 crores. Saicriti Pharma’s new injectable facility is on track for completion in July 2027, aiming to add significant injectable capacity and new capabilities like lyophilisation. Sai Prathyak Laboratories has been renamed its dedicated R&D subsidiary, consolidating group R&D efforts and preparing to undertake external R&D and CRO development contracts from FY28.
Operational Updates and Outlook
An expansion at Unit III, Bhongir, is nearing completion, set to increase production capacity by 81% from December 2026. This expansion will add new lines for ointment, capsule, and liquid oral manufacturing. The company is strategically focusing on markets like Southeast Asia, Latin America, and the Middle East for its injectables business over the next two to three years, while also exploring opportunities in the US market.
Looking ahead, Sai Parenterals anticipates that the expanded Unit 3 capacity and the commencement of operations at the Adelaide facility in Q4 FY27 will drive growth. The company expects to comfortably exceed its revenue target of INR 750 crores for FY27 and aims to maintain gross margins above 45% in the coming quarters. The integration of acquisitions and new capacities are expected to contribute to stronger performance in FY28.
Source: BSE
