SAILIFE - Sai Life

📊 NSE: SAILIFE 🏢 Pharmaceuticals - Indian - Formulations 📅 Last Updated: 12/14/2025 12:38

💰 Financial Performance

Revenue Growth by Segment

In H1 FY26, the CDMO segment grew 72% YoY to INR 667 Cr, contributing 64% of total revenue. The CRO segment grew 28% YoY to INR 367 Cr, contributing 36% of total revenue. For the full FY 2024-25, total income grew 15.9% YoY to INR 1,731.35 Cr.

Geographic Revenue Split

The company serves 300+ global clients across the US, UK, EU, and Japan, though specific percentage splits per region are not disclosed in the available documents.

Profitability Margins

Gross margins expanded in FY25 due to operational efficiencies in commercial products. PAT margin expanded 430 bps to 10.0% in FY25 (INR 170.13 Cr) from 5.7% in FY24. In H1 FY26, PAT stood at INR 144 Cr.

EBITDA Margin

EBITDA margin was 25.0% in FY25 (INR 424.74 Cr), up 460 bps from 20.4% in FY24. Margins further improved to 27% in H1 FY26 and reached 29% (INR 156 Cr) in Q2 FY26 due to operating leverage and better capacity utilization.

Capital Expenditure

The company incurred INR 248 Cr in capex during H1 FY26, primarily for R&D capacity expansion, against a total planned capex of INR 700 Cr for the full FY26.

Credit Rating & Borrowing

Finance costs decreased by 11.3% YoY to INR 76.16 Cr in FY25, primarily driven by the repayment of INR 720 Cr of debt using IPO proceeds.

⚙️ Operational Drivers

Raw Materials

Specific chemical names are not disclosed; however, Cost of Goods Sold (COGS) represented 26.9% of total income in FY25, amounting to INR 465.76 Cr.

Capacity Expansion

The company is expanding R&D capacity and advancing offerings in new modalities. Current capacity utilization was reported at 67% for FY 2024-25.

Raw Material Costs

COGS increased by 4.5% YoY to INR 465.76 Cr in FY25, a slower rate than revenue growth, leading to a 290 bps increase in gross margins due to operational efficiencies in commercial products.

Manufacturing Efficiency

Capacity utilization stood at 67% in FY25. Efficiency gains in commercial product manufacturing were cited as the primary driver for gross margin expansion.

📈 Strategic Growth

Expected Growth Rate

15-20%

Growth Strategy

Growth is driven by an integrated CRDMO model that provides seamless support from discovery to commercial manufacturing. The strategy includes scaling late-stage and commercial programs (3 products recently moved to late-stage) and investing INR 700 Cr in FY26 for R&D and new technology capacity.

Products & Services

The company provides CRO (Discovery) and CDMO (Development and Manufacturing) services, including CMC (Chemistry, Manufacturing, and Controls) and integrated drug discovery services.

Brand Portfolio

Sai Life Sciences

New Products/Services

The company is advancing offerings in new modalities and technologies; 3 products recently transitioned into the late-stage pipeline, which typically drives higher revenue as they move toward commercialization.

Market Expansion

Expansion is focused on global pharma hubs in the US, UK, EU, and Japan, leveraging world-class facilities in Hyderabad, Bidar, and Manchester.

Strategic Alliances

Maintains a 5-year strategic partnership with Schrödinger (signed in 2023) focused on drug discovery candidates.

🌍 External Factors

Industry Trends

The industry is seeing a continued shift toward outsourcing by global pharma to integrated CRDMOs. Sai Life Sciences is positioning itself to capture this by expanding its late-stage pipeline and R&D capabilities.

Competitive Landscape

Competes with global CRDMOs; the company uses top-tier consulting firms to benchmark its productivity and cost structure against global peers.

Competitive Moat

The moat is built on 25+ years of expertise, an integrated 'Discovery to Delivery' model, and deep-rooted relationships with 18 of the top 25 global pharma firms, which creates high switching costs.

Macro Economic Sensitivity

The business is sensitive to global pharmaceutical R&D spending and macroeconomic trends affecting biotech venture capital funding.

Consumer Behavior

Not applicable (B2B model).

Geopolitical Risks

Operations across India and the UK expose the company to international regulatory shifts and trade policies in the pharma sector.

⚖️ Regulatory & Governance

Industry Regulations

The company maintains cost records as mandated under Section 148(1) of the Companies Act, 2013. It must comply with stringent manufacturing standards for global pharma supply.

Taxation Policy Impact

The consolidated effective tax rate for FY 2024-25 was 25.3%, with a total tax expense of INR 57.57 Cr.

Legal Contingencies

An order was passed under Section 73(9) of the Goods and Services Tax Act by the Deputy Commissioner of Commercial Taxes (Audit), Bidar, regarding tax matters.

⚠️ Risk Analysis

Key Uncertainties

Biotech funding volatility poses a risk to the CRO segment's growth. Operational risks are managed through a Vigil Mechanism and a Code of Conduct for Board and Senior Management.