Sai Parenterals shifts to CDMO-led export revenue model

Sai Parenterals Limited shifted its revenue base towards contract development and manufacturing organisation (CDMO) work and exports by FY26. CDMO accounted for 63% of FY26 net revenue, from 5% in FY23, while exports rose from 3% to 63% of revenue from operations. Private-sector customers also reached 81% of revenue in FY26.

How has Sai Parenterals changed its revenue model?

Sai Parenterals has changed from a branded-generics-led business to one in which CDMO products and services were the larger FY26 revenue vertical. Branded generic formulations fell from 95% of revenue in FY23 to 37% in FY26, while CDMO rose by 58 percentage points to 63% over the same period.

Sai Parenterals reported a 355.6% compound annual growth rate (CAGR) for CDMO revenue between FY23 and FY26, compared with 15.6% for branded generic formulations. Management attributes the CDMO expansion to long-term contracts and better working capital, while it attributes branded-generics growth to consistent launches and a wider distributor network.

The verticals have different routes to market. Sai Parenterals sells off-patent formulations under its own brands to government agencies, pharmaceutical companies, hospitals and super stockists, alongside export distributors. Its CDMO work covers development, validation, stability, dossiers, international filings and commercial supply for international customers.

Why did exports become central to Sai Parenterals?

Exports became central because their share of Sai Parenterals revenue from operations increased from 3% in FY23 to 63% in FY26. Export share first rose to 6% in FY24 and 16% in FY25 before the FY26 increase, alongside the growing contribution from CDMO and the Noumed platform.

Australia remained the largest export market, contributing 76% of export revenue in FY26, compared with 63% in FY25. The Philippines rose from 4% in FY25 to 18% in FY26, while South Africa declined from 19% in FY23 to 1% in FY26 and other markets declined from 31% in FY25 to 5%.

Sai Parenterals supplies exports through seven distributors across 10 countries, covering regulated Australian markets, rest-of-world markets in the Middle East and semi-regulated African markets. The company also disclosed a four-year exclusive anti-tuberculosis contract in the Philippines, providing a defined contractual basis for part of its international supply activity.

How has Sai Parenterals' customer mix changed?

Sai Parenterals' customer mix shifted towards the private sector, whose share rose from 39% of revenue in FY23 to 81% in FY26. Institutional customers declined from 61% to 19% over the same period, which the presentation links to receding tender exposure.

The customer shift coincided with the larger CDMO contribution, which serves international customers through development and manufacturing assignments. Sai Parenterals said more than 50% of consolidated revenue is contracted under long-term regulated-market agreements, with Noumed and CDMO identified as the anchors of that revenue visibility.

Domestic sales remain part of the business model despite the mix change. Sai Parenterals said its domestic business is anchored by institutional supply to central and state government agencies, Employees' State Insurance hospitals and Jan Aushadhi locations, while branded generic formulations still represented 37% of FY26 net revenue.

What capabilities support Sai Parenterals' CDMO export plan?

Sai Parenterals supports its CDMO export plan with six facilities, including five operating in India and one in Australia from January 2027. Its commercial portfolio comprises 302 products across nine therapeutic areas, supported by 599 approved registrations and 76 dossiers under development in regulated and semi-regulated markets.

Unit III, a Therapeutic Goods Administration of Australia-approved facility, was expanded from 85.5 million to 155 million units a month to serve rest-of-world, regulated and Pharmaceutical Inspection Co-operation Scheme markets. Sai Parenterals also disclosed European Union Good Manufacturing Practice and United States Food and Drug Administration injectable capability through Saicitri Pharma from July 2027.

In October 2026, Sai Parenterals acquired Sai Prathyak Laboratories, its dedicated research and development subsidiary, to support dossier filings and complex-generics development. The group is targeting 174 molecules and 285 stock-keeping units, including external CDMO development contracts, while its portfolio is weighted towards chronic and sub-chronic therapies involving repeat treatment.

The company has outlined a Rs 571 crore capital-expenditure programme, of which its own funded share is Rs 440 crore. Sai Parenterals said the programme is funded largely by initial public offering proceeds and Noumed's AUD 2 crore Australian Government Modern Manufacturing Initiative grant.

What does Noumed add to Sai Parenterals' export exposure?

Noumed adds Australian and New Zealand commercial access, more than 451 Therapeutic Goods Administration dossiers and pharmacy-chain relationships to Sai Parenterals' export exposure. Sai Parenterals acquired a 74.64% stake in Noumed Pharmaceuticals in 2025, and the platform had 491 stock-keeping units under exclusive agreement in Australia and New Zealand.

Sai Parenterals identified Noumed's contracted Australian over-the-counter supply as a foundation of long-term international revenue. The agreements total AUD 23.2 crore, comprising AUD 20.2 crore over 7.5 years and AUD 3 crore over three years, and sit alongside the company's four-year Philippines anti-tuberculosis contract.

The acquisition also links commercialisation with manufacturing and regulatory capabilities in Australia, which represented 76% of FY26 export revenue. Earlier steps included the 2021 acquisition of a Pharmaceutical Inspection Co-operation Scheme-approved cephalosporin plant, Unit IV, and a Therapeutic Goods Administration-approved Australian plant, Unit III, followed by the 2023 acquisition of Revat Laboratories.

Conclusion

Sai Parenterals' reported mix indicates a material change between FY23 and FY26. CDMO became its largest revenue vertical at 63%, exports reached 63% of revenue from operations and private-sector customers reached 81% of revenue. Branded generic formulations, at 37% of FY26 net revenue, continue to provide a domestic and distributor-based component alongside contract-led international activity.

The next disclosed milestones are the start of Adelaide operations in January 2027 and European Union Good Manufacturing Practice and United States Food and Drug Administration injectable capability through Saicitri Pharma from July 2027. Execution of the Rs 571 crore capital-expenditure programme, including the Rs 440 crore company-funded share, is also a stated part of the planned capacity and capability build-out.