Financial Performance Q1 FY27

Consolidated Results (including Noumed Pharmaceuticals consolidated from 12th November 2025):

  • Total Revenue: ₹182 crores (compared to ₹201 crores in Q4 FY26)
  • Gross Profit: ₹76 crores
  • Gross Margin: 41.8% (improved from 38.1% in Q4 FY26, +370 basis points)
  • EBITDA: ₹27 crores
  • EBITDA Margin: 14.9% (improved from 14.4% in Q4 FY26, +50 basis points)
  • Profit After Tax: ₹8 crores
  • PAT Margin: 4.3%
  • Debt (as of 30th June 2026): ₹310 crores (compared to ₹319 crores in March 2026)
  • Cash & Cash Equivalents: ₹184 crores
  • Gross Debt to Equity Ratio: 0.6 times

Standalone Performance:

  • Total Revenue: ₹56 crores (175% growth from ₹20 crores in Q1 FY26)
  • Gross Profit: ₹22 crores (127% growth)
  • Gross Margin: 39% (compared to 47% in Q1 FY26)
  • EBITDA: ₹17 crores (4x growth from ₹4 crores)
  • EBITDA Margin: 29% (improved from 20% in Q1 FY26, +890 basis points)
  • PAT: ₹9 crores (11x growth from ₹0.8 crores)
  • PAT Margin: 15%

Strategic Developments and Board Approvals

IPO Fund Redeployment:

The Board approved variation in IPO object utilization:

  • ₹83.83 crores originally earmarked for capacity expansion/upgradation of Unit-1 and Unit-2
  • ₹18.02 crores originally for new R&D center establishment
  • Total ₹101.85 crores to be redeployed for acquiring majority stakes in two operating pharmaceutical assets
  • Subject to shareholder approval

Reasons for Variation:

  • Hyderabad Industrial Lands Transformation Policy (HILTP) prohibits upgradations within outer ring road
  • Unit-1 and Unit-2 at Jeedimetla fall within restricted area
  • Physical constraint: Existing site measures 3,100 sq yards vs required 12,000-13,000 sq yards for EU-GMP injectable plant
  • Greenfield project would require 7-8 months for land allotment alone

Saicriti Pharma Acquisition:

  • Acquire 60% equity stake in Saicriti Pharma Private Limited for ₹83.83 crores
  • Saicriti is constructing critical care injectable facility at Gummadidala (outside outer ring road) on 15,000+ sq yard site
  • Facility being built to European GMP and USFDA standards with complex injectables, lyophilisation and GLP capabilities
  • Total project cost: ₹215 crores (Company contribution: ₹83.83 crores for 60%, promoters fund 40%, balance through project debt)
  • Delivers 154.66 million units injectable capacity vs original 105 million units plan (+47% capacity)
  • Completion extended to April 2027 (vs original March 2027)
  • Gain access to Saicriti's existing domestic critical care franchise of ₹52 crores

Prathyak Laboratories Acquisition:

  • R&D subsidiary to acquire 60% equity in Prathyak Laboratories Private Limited for ₹15 crores (vs original ₹18.02 crores allocation)
  • Prathyak operates established R&D center at Genome Valley, Hyderabad with 3 years operating history
  • 65 personnel including 28 research scientists
  • Pipeline of 150 SKUs across 86 molecules with capability in lyophilised, liposomal, nano-based complex injectables and oncology injectables
  • Expected completion on or before 30th September 2026
  • Will be renamed Sai Prathyak

Australian Operations (Noumed Pharmaceuticals)

Funding Status:

  • Total AUD 53 million Australian program funding complete
  • Company infused AUD 1.75 million through Singapore subsidiary 6 weeks ago
  • Board approved balance AUD 1.7 million for deployment within coming weeks
  • Existing Australian shareholders contributed AUD 1.5 million

Facility Progress:

  • Construction on schedule with physical completion targeted for January 2027
  • TGA licensing inspection anticipated by 31st March 2027
  • Phase 1 manufacturing expected from April 2027

Business Model:

  • IP registration holder with 5 exclusive long-term contracts and 10 exclusive supply molecule contracts covering 526 SKUs
  • Typical contract terms: 5+ years with product-wise annual volume forecasts
  • Two largest customers: Wesfarmers Health (ASX top 20) and EBOS Group (ASX top 150)
  • Covers over 2,900 of Australia's 5,500 pharmacies

EBOS Group Contract Renewal:

  • Renewed 1st July 2026 with TerryWhite Chemmart and Pharmacy Choice
  • Agreement value: AUD 202 million (~₹1,300 crore at 1 AUD = ₹64.5)
  • Exclusive term: 7.5 years (AUD 27 million annually) with 3-year extension option
  • Features: Addition of 12 new products annually, utilizes Sai's development platform
  • Contribution begins Q2 FY27

Q1 Impact:

  • West Asian situation delayed consignments from Indian Contract Manufacturing Network
  • Industry-wide disruption necessitated air freight instead of sea
  • Elevated air freight costs impacted quarterly margins
  • Service level agreements and minimum supply obligations maintained

US Market Entry

  • Board approved incorporation of US subsidiary held through Sai Parenterals PTE Singapore
  • Entity to support evaluation of US market entry
  • Evaluation at preliminary stage

Guidance and Outlook

  • Maintains FY27 revenue guidance of ₹750 crores at EBITDA margin ~17%
  • Year weighted 45:55 between first and second halves
  • Q1 represents approximately 24% of full-year revenue target (ahead of guidance)
  • FY27 expected to be peak debt growth year with deleveraging from FY28
  • Raw material cost recovery remains partial, full benefit expected through Q2
  • Inventory levels expected to reduce from 9-10 months to 5-6 months with Australian facility operational

Q&A Highlights

EBOS Contract:

  • 12 new products annually are additive to existing contract value
  • Growth driven by pharmacy network expansion (net +16 pharmacies annually)
  • Expect similar order wins in next year

Management Bandwidth:

  • Acquisition strategy includes retaining existing management teams
  • Noumed team owns 25.4% stake and delivers operations
  • Prathyak has 67 personnel including experienced management

Saicriti Rationale:

  • Hyderabad policy change forced relocation outside outer ring road
  • Acquisition saves 6-8 months land allotment time
  • Provides existing business and manufacturing capability
  • Enables US FDA potential in future

Injectable Market:

  • Downward realization trend due to focus on domestic market
  • New facility targets ROW, Europe, Southeast Asia, Latin America, Middle East
  • Prathyak acquisition provides 150 developed products for immediate transfer

Debt Profile:

  • Current debt ₹310 crores, comfortable at 0.6x debt-equity
  • Saicriti project debt will be at subsidiary level
  • Expected to maintain 0.6% debt equity ratio