Sai Life Sciences announced a robust 23% year-on-year revenue growth for Q2 FY27, with its CDMO and CRO businesses growing by 20% and 28% respectively. The company highlighted progress in integrated discovery programs, expansion of services across the drug lifecycle, and steady advancement in its capacity expansion initiatives, including a new manufacturing site in Telangana. Management expressed confidence in achieving long-term growth and EBITDA projections.
Sai Life Sciences Q2 FY27 Earnings Highlights
Sai Life Sciences Limited reported strong financial performance for the second quarter of Fiscal Year 2027 (Q2 FY27). The company achieved a consolidated revenue growth of 23% compared to the same period last year. This growth was driven by a 20% increase in the CDMO (Contract Development and Manufacturing Organization) business and a significant 28% rise in the CRO (Contract Research Organization) business.
Strategic Progress and Capacity Expansion
During the quarter, Sai Life Sciences continued to focus on its core priorities: deepening relationships with global pharmaceutical companies, expanding its service offerings, and building capacity. A key milestone was the consolidation of its position as an integrated CRDMO (Contract Research, Development, and Manufacturing Organization) of choice for large pharma customers. The company has commenced operations with a previously announced end-to-end integrated collaboration and has converted another large pharma relationship into a similar strategic engagement.
In terms of capacity expansion, the Bidar site’s small molecule manufacturing capacity of around 220 KL is now ready, with final quality trials underway. The commissioning of an additional 225 KL capacity has been rescheduled to early Q3 of FY28. Furthermore, design work has commenced on a new manufacturing site in Telangana, with groundbreaking anticipated in Q4 of FY27. The company has incurred approximately INR 621 crore in capex during the first half of FY27, tracking its full-year plan of INR 1,100-1,300 crore.
Market Outlook and Business Drivers
Management noted tailwinds supporting supply chain diversification and commented on evolving regulatory developments in the U.S. and China. The company believes it is well-positioned to benefit from these trends due to its established relationships, integrated capabilities, and scientific depth. Despite modest increases in raw material costs due to the Middle East situation, proactive supply chain management has ensured continuity, with efforts underway to recover incremental costs from customers.
The company highlighted continued traction in outsourcing opportunities from large pharmaceutical companies and observed a revival in the biotech sector, with increased inquiries for integrated engagements in new modalities like peptides. The management expressed confidence in balancing growth investments with execution discipline, aiming to commission new capacity with required quality standards to meet pipeline opportunities and achieve stated long-term growth and EBITDA projections.
Source: BSE
