Sai Parenterals Q2 FY27 EBITDA Up 67% Sequentially

Q2 FY27 Consolidated Results (Sequential Comparison with Q1 FY27):

Revenue from operations: ₹196.1 crores (up 9% from ₹179.9 crores in Q1)
Raw material cost: ₹103.0 crores (down from ₹106.2 crores)
Gross profit: ₹93.1 crores (up 26.4% sequentially)
Gross margin: 47.5% (vs 40.9% in Q1)
EBITDA: ₹41.4 crores (up 67.4% sequentially)
EBITDA margin: 21.1% (vs 13.7% in Q1)
Depreciation/amortization: ₹25.1 crores (vs ₹8.1 crores in Q1)
Finance cost: ₹9.0 crores (vs ₹9.4 crores)
Profit before tax: ₹9.9 crores (vs ₹9.8 crores)
Tax credit: ₹0.6 crores (vs tax charge of ₹1.9 crores)
Profit after tax: ₹10.5 crores (up 32.7% from ₹7.9 crores)
PAT margin: 5.4%

H1 FY27 Consolidated Performance:

Saicriti Pharma Acquisition:

Investment of ₹83.83 crores from IPO proceeds for 60% stake
New injectable facility at Gummadidala targeting July 2027 completion
Facility being built to EU GMP and US FDA standards
Will increase injectable capacity to 154.66 million units (47% more than planned upgrade)
Adds lyophilisation and GLP-1 manufacturing capabilities
Total project cost: ₹215 crores (promoters fund 40% equity, remainder through project debt)
Expected accreditation within 12 months of completion, exports from FY28, Europe from FY29

Sai Prathyak Laboratories Acquisition:

Investment of ₹15 crores from IPO proceeds for 60% stake (completed 15th September 2026)
Now serves as dedicated R&D subsidiary with all group R&D consolidated
Brings 65 personnel including 28 research scientists
Portfolio: 174 molecules and 285 SKUs across critical care and oncology
Will begin signing external R&D and CRO contracts from next quarter
Revenue generation projected from FY28

Unit III Expansion (Bhongir):

Expansion almost completed, new block to commence from December 2026
Production capacity to increase from 85.5 million to 155 million units per month (81% increase)
Adds high-capacity ointment manufacturing, dedicated high-speed capsule filling line, and high-speed liquid oral manufacturing
Output ramp-up from Q4 FY27, primarily serving Australia and New Zealand

Adelaide Facility (Australia):

AUD46 million invested of AUD53 million planned
AUD20 million grant from Australian Federal Government under Modern Manufacturing Initiative
Commissioning expected in January 2027 (delayed due to Iran conflict logistics disruptions)
TGA license inspection anticipated in Q2 2027
Commercial supply expected upon license granting

Australian OTC Supply Contracts:

7.5-year exclusive OTC supply contract with EBOS Group (TerryWhite and Pharmacy Choice brands) valued at AUD202 million, renewed 1st July 2026
3-year OTC medicine supply contract with Wesfarmers (Priceline and Pharmacy Health brands) valued at AUD30 million (₹204 crores), renewed 25th August 2026
Total contracted Australia OTC supply: AUD232 million (approximately ₹1,506 crores)

Philippines Market:

Added 11 molecules and 22 SKUs in Q2, led by cardiovascular therapies
Philippines contribution rose to 16% of export revenue from 12% in Q1
USD11 million anti-TB government contract validation batches completed, commercial launch expected after January 2027
USD14 million regular contract signed pre-IPO

Balance Sheet (as of 30th September 2026):

Q2 FY27:

Maintained FY27 revenue target: ₹750 crores (H1 achieved ₹376 crores)
Expect gross margin to remain above 45% in coming quarters
EBITDA margin expected to exceed 17% for FY27
Key H2 drivers: Unit III capacity ramp-up, Adelaide facility operations, Sai Prathyak external contracts
FY28 guidance to be provided in next earnings call (Jan-Feb 2027)

Board approved acquisition of remaining 25% stake in SP Analytics Private Limited to make it wholly owned subsidiary
Management bandwidth expansion with increased KMP appointments planned
Biosimilars and mAbs strategy paper to be released within a month