This article first appeared on GuruFocus .
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Total Revenue:INR 553 crores for Q1 FY27, a year-over-year increase of approximately 12% compared to INR 496 crores in Q1 FY26.
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CDMO Revenue:Contributed approximately 60% of total revenue, growing around 6% year-over-year.
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CRO Revenue:Contributed approximately 40% of total revenue, growing 26% year-over-year.
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Revenue Guidance:Reaffirmed long-term revenue growth guidance of up to 20%.
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EBITDA Guidance:Reaffirmed long-term EBITDA margin range of 28% to 30%.
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Active Commercial Molecules:33 active commercial molecules and 13 molecules in late-phase development.
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Repeat Business:Returning customers accounted for over 90% of revenue in fiscal years 2025 and 2026.
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Release Date: August 07, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Revenue grew 12% year-over-year, with CRO segment up 26%, driven by strong demand and strategic partnerships.
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Successfully converted a pilot collaboration with a large pharma company into a long-term, high-volume discovery chemistry partnership.
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Added six late-phase molecules to the pipeline over the last 15 months, with five from large pharma FTE relationships, enhancing future commercial manufacturing potential.
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Expanding into new modalities like peptides and ADC, with a dedicated peptide development lab and XPP Center of Excellence, positioning for future growth.
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Maintained strong customer loyalty with over 90% of revenue from returning customers, and secured EcoVadis Platinum Rating for sustainability.
Negative Points
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CDMO revenue growth was modest at 6% year-over-year, reflecting lumpiness in the business.
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Heavy capital expenditure guidance of 1,100-1,300 crore for FY27, with significant investments in new capabilities like peptides and formulation, which may pressure near-term returns.
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Formulation capabilities are still six months away from operational readiness, with no immediate revenue contribution.
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Peptide commercial manufacturing facility is not expected to be operational until 2028, delaying potential revenue from this high-growth area.
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The company faces execution risks in transitioning large pharma customers to integrated models, with only two expected to convert this year.
Q & A Highlights
Q: Does getting involved through dedicated FTE development teams materially increase the probability of retaining those molecules for commercial manufacturing versus programs where you enter later through an RFP or tech transfer? A: Krishna Kanumuri (CEO) confirmed that the primary intent of every pharma company is to keep the program with Sai Life Sciences through commercialization. They would only leave the program in cases of a capacity mismatch, but the stated intent is to retain the molecule for the entire product life cycle.
Q: As large pharma moves from single-service engagements to integrated programs, do you see a meaningful change in revenue per customer and relationship duration, or getting more wallet share per relationship? A: Siva Chittor (CFO) explained that over 90% of revenue comes from existing customers, and the strategy is to increase wallet share by expanding both commercial scope and the spectrum of services offered. This approach helps de-risk overall revenue participation, even within the same customer, and leverages the tailwind of India outsourcing with 19 of the top 25 pharma companies as clients.
Q: You are entering a much heavier investment cycle with up to ?1,300 crore of CapEx, including a greenfield for peptides. What internal return threshold do you use before committing this capital, and what would make you slow down or defer an investment? A: Siva Chittor (CFO) stated that they use internal hurdle rates generally higher than their company-level ROE targets. For capability-building expenditures, deferral is difficult unless there are severe business circumstances. However, for capacity additions, they evaluate modularly and have demonstrated in the past that they will slow down CapEx if capacity addition requirements slow down.
Q: Can you provide clarity on the four new commercial contracts to be added this year, specifically regarding modalities, whether you will be the primary supplier, and the revenue potential per product? A: Siva Chittor (CFO) noted that they are likely the primary supplier in two out of the three contracts added in Q1. He reiterated that three of the products would be "decently sized" in terms of value relative to their revenue, while one would be a lower-volume product, consistent with their previous commentary.
Q: What kind of formulation capabilities are you entering, and what visibility do you have in the pipeline for these projects? A: Krishna Kanumuri (CEO) clarified that they are building small molecule, primarily oral solids capabilities up to Phase 1 and Phase 2 clinical supplies, not commercial manufacturing. This is driven by customer demand for China+1 supply strategies for early-phase clinical materials and fits well with existing development relationships. There is significant interest from multiple partners already working with them on the chemistry side.
Q: Can you give some color on how the two offshore facilities in Boston and Manchester are shaping up, and are they commercially adding to revenues? A: Siva Chittor (CFO) explained that Boston and Manchester are satellite centers designed to bring larger business back to India. Boston, established in late 2020, has helped cultivate customers early, contributing to discovery revenue growth of 30-35% over the last four to five years. Manchester brings complementary skill sets from large pharma, and both teams work in tandem with the India teams as a single unit.
Q: Regarding the peptide program, how many projects and customers are you working with, and is the 2028 facility a pilot-scale or commercial facility? A: Krishna Kanumuri (CEO) stated that the majority of current peptide work is in early-stage discovery with multiple large pharma and biotech customers. A dedicated development lab for one pharma company is coming online, along with a broader lab for GMP pilot supplies for clinical trials. The 2028 facility is for true commercial capacity.
Q: What kind of work are customers willing to give on the manufacturing side for peptides, and are they starting with smaller chains before moving to higher-value work? A: Krishna Kanumuri (CEO) indicated that in development and technology, customers are already working with longer chains. For commercial manufacturing, they may start with smaller chains from mature pipelines, but they are seeing customers work with longer chains now rather than just small ones.
Q: What is the total spend on the peptide side expected to be by the end of 2028 when the facility comes online? A: Siva Chittor (CFO) provided a ballpark figure of less than ?300 crores for the total peptide-related spend through 2028.
Q: Can you provide some clarity on the 15-20% growth guidance, given the huge pipeline of late-stage molecules and the sequential slowdown in growth? A: Siva Chittor (CFO) clarified that the 15-20% guidance is a three-to-five-year mid-term guidance, acknowledging the industry's lumpiness. He emphasized that they are not constraining business for growth, noting they achieved 30% annualized growth last year, and that shipment timing and purchase orders will ultimately determine quarterly revenue. The guidance is a directional commitment, but they will also aim to exceed it when possible.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
