Sai Life Sciences: Navigating Growth in a Dynamic CRDMO Landscape

Sai Life Sciences Limited, a prominent player in the Contract Research, Development, and Manufacturing Organization (CRDMO) sector, has reported a robust financial performance for the second quarter and half year ended September 30, 2025. The company, listed on BSE as 544306 and NSE as SAILIFE, showcased significant growth, reinforcing its position as one of India's fastest-growing CRDMOs. The headline financials reveal a strong trajectory, with revenue from operations surging by 36% year-on-year to INR 537 crore for Q2 FY26. This impressive top-line growth was complemented by an even stronger bottom-line expansion, as EBITDA climbed 43% year-on-year to INR 156 crore, and Profit After Tax (PAT) remarkably doubled, registering a 100% increase to INR 84 crore. This performance underscores the company's consistent execution and strategic focus in a complex global market.

The growth momentum was broad-based, with both the Contract Research Organization (CRO) and Contract Development and Manufacturing Organization (CDMO) services contributing significantly. For Q2 FY26, the CDMO segment recorded revenues of INR 352 crore, marking a 37% increase from the previous year and contributing 66% to the total revenue. The CRO segment also demonstrated healthy growth, with revenues of INR 185 crore, up 19% year-on-year, accounting for 34% of the total. This balanced growth across segments highlights the company's integrated service model and its ability to capture opportunities across the pharmaceutical value chain. The management attributed this success to growing client relationships and continued traction in late-stage and commercial programs, reflecting the trust global innovator clients place in Sai Life Sciences' scientific teams and operational capabilities.

Strategic Investments and Future Readiness

Sai Life Sciences is not merely resting on its laurels; it is proactively investing in its future. The company's strategic vision involves evolving into a truly integrated, innovator-led global CRDMO, aiming to be a strategic collaborator rather than just a reliable execution partner. This vision is underpinned by three core pillars: scientific depth, technological differentiation, and global scale. The management highlighted ongoing investments in new modalities, advanced technologies, and capacity expansion to strengthen long-term competitiveness. These investments are enabling the company to address a broader range of client needs, enhance efficiency across the value chain, and build deeper scientific capabilities.

One of the key strategic initiatives is the significant capacity expansion underway. The company is in the process of scaling up its total installed capacity from approximately 700 KL to 1,150 KL by the end of FY27. This expansion is critical for meeting the growing client demand across clinical and commercial manufacturing. Furthermore, Sai Life Sciences has commenced construction of a new CMC Process R&D Center at its Hyderabad campus, targeted for completion by September 2026. This facility is designed to double the Process R&D capacity and will offer flexible collaboration models for global innovators, supporting early to late-stage CMC programs. The center will feature specialized labs for peptides and amidites, kilo labs for early clinical supplies, and NCE formulation development.

Navigating Macroeconomic Headwinds and Opportunities

The CRDMO industry operates within a dynamic macroeconomic environment, characterized by themes like the 'China+1' strategy and fluctuations in biotech funding. Sai Life Sciences has demonstrated resilience in navigating these challenges. The management noted that pharma innovators are actively seeking to rebalance their global supply chains, reducing concentration risks, a trend that bodes well for the company. Despite a perceived slowdown in biotech funding, Sai Life Sciences has successfully offset this impact by increasing engagement with large pharma clients, delivering industry-leading growth.

The company is also making focused investments in next-gen modalities such as Peptides, Antibody-Drug Conjugates (ADCs), Oligonucleotides, and Targeted Protein Degraders (TPDs). This includes complementing peptide discovery with process and scale-up facilities, enhancing ADC conjugation capabilities, and validating phosphoramidite processes for commercial oligonucleotide molecules. These investments are crucial for supporting the next wave of complex therapeutics and maintaining a competitive edge. The completion of the Phase 2 expansion of its Vivarium at the Hyderabad R&D Centre, adding 12,000 sq. ft., further strengthens its preclinical assay capabilities and ability to deliver integrated Discovery programs.

Commitment to Quality, Compliance, and Sustainability

Sai Life Sciences places a strong emphasis on quality and compliance, which is a cornerstone of its client trust. The company successfully completed 35 customer and 3 regulatory audits across its manufacturing and R&D units in the past 12 months, with zero data integrity deviations and zero critical observations. This impeccable track record reflects a strong operational discipline and commitment to global regulatory excellence. Furthermore, the company is deeply committed to sustainability and inclusion. Its near-term Greenhouse Gas (GHG) reduction targets have been validated by the Science Based Targets initiative (SBTi), reinforcing its climate-aligned growth strategy. The company has also signed the UN Women's Empowerment Principles (WEPs), strengthening its focus on gender equality and inclusive workplace practices.

Looking ahead, Sai Life Sciences is well-positioned for sustainable growth. The management guidance projects a 15-20% revenue CAGR over the next 3-5 years and aims for EBITDA margins of 28-30% in the next 2-3 years. The company's disciplined capital allocation, strategic investments in capacity and new modalities, and unwavering commitment to quality and sustainability are expected to drive long-term profitable growth. Sai Life Sciences continues to strengthen its foundation, expand its infrastructure, and deepen client collaborations, ensuring it remains a trusted partner in accelerating the discovery, development, and manufacturing of new medicines.