Sai Parenterals reports Rs 205.5 crore FY27 H1 cash outflow

Sai Parenterals Limited recorded net cash used in operating activities of Rs 205.5 crore in H1FY27, despite revenue of Rs 376.0 crore and earnings before interest, tax, depreciation and amortisation (EBITDA) of Rs 66.1 crore. Working-capital changes consumed Rs 254.5 crore, exceeding Rs 53.2 crore of operating profit before those changes and reducing closing cash to Rs 129.3 crore.

Why did Sai Parenterals report an H1FY27 operating cash outflow?

Sai Parenterals reported an operating cash outflow because Rs 254.5 crore of working-capital changes exceeded its Rs 53.2 crore operating profit before working-capital changes. Net profit before tax was Rs 19.7 crore, while adjustments for non-cash, investment or financial items added Rs 33.5 crore in the consolidated cash-flow statement.

Cash generated from operations was negative Rs 201.3 crore after the working-capital movement, and net direct taxes paid of Rs 4.2 crore took net operating cash flow to negative Rs 205.5 crore. In H1FY26, net operating cash flow was negative Rs 66.0 crore, with working capital consuming Rs 77.4 crore and cash generated from operations at negative Rs 59.4 crore.

The operating cash deficit therefore widened even as reported profit before tax increased from Rs 11.2 crore in H1FY26 to Rs 19.7 crore in H1FY27. Sai Parenterals notes that these periods are not like-for-like because H1FY27 includes Noumed Pharmaceuticals for the full period, while Noumed was consolidated only from November 12, 2025 in the prior-year period.

How did Sai Parenterals receivables and cash balances change?

Sai Parenterals reported trade receivables of Rs 254.5 crore at H1FY27, versus Rs 1.0 crore at FY26, while cash and cash equivalents fell to Rs 129.3 crore from Rs 417.0 crore. The Rs 253.5 crore rise in receivables is close in scale to the Rs 254.5 crore working-capital absorption, although the presentation does not allocate that cash-flow movement among individual balance-sheet items.

Inventories increased by Rs 10.4 crore to Rs 182.2 crore, other current assets rose by Rs 11.2 crore to Rs 43.7 crore, and trade payables declined by Rs 21.2 crore to Rs 127.4 crore. Current assets nevertheless fell to Rs 635.0 crore from Rs 822.0 crore, primarily alongside the Rs 287.7 crore reduction in reported cash and cash equivalents.

The cash-flow statement records a Rs 287.6 crore net reduction in cash and cash equivalents in H1FY27, compared with a Rs 13.3 crore increase in H1FY26. Opening cash was Rs 417.0 crore and closing cash was Rs 129.3 crore; the Rs 0.1 crore difference from the balance-sheet comparison reflects the rounded figures presented.

Did Sai Parenterals revenue and profit increase in H1FY27?

Sai Parenterals reported H1FY27 revenue of Rs 376.0 crore, up from Rs 89.3 crore in H1FY26, and EBITDA of Rs 66.1 crore, compared with Rs 18.6 crore. EBITDA margin declined to 17.6% from 20.8%, while profit after tax rose to Rs 18.4 crore from Rs 7.8 crore and its margin fell to 4.9% from 8.7%.

The presentation reports revenue growth of 321.0% and EBITDA growth of 256.3%, but says the comparison is not like-for-like because of Noumed Pharmaceuticals' consolidation from November 12, 2025. This qualification also applies to the cash-flow comparison between H1FY27 and H1FY26.

In Q2FY27, revenue was Rs 196.1 crore, compared with Rs 179.9 crore in Q1FY27, while EBITDA rose to Rs 41.4 crore from Rs 24.7 crore. The EBITDA margin increased sequentially to 21.1% from 13.7%, although Q2 depreciation was Rs 25.1 crore versus Rs 8.1 crore in Q1FY27 and finance cost was Rs 9.0 crore.

What other H1FY27 cash movements affected Sai Parenterals?

Sai Parenterals used Rs 69.8 crore in investing activities and Rs 12.3 crore in financing activities during H1FY27, in addition to the Rs 205.5 crore operating outflow. These three movements produced the Rs 287.6 crore fall in cash; in H1FY26, investing activities used Rs 4.8 crore while financing activities generated Rs 84.1 crore.

Capital work-in-progress increased to Rs 269.3 crore at H1FY27 from Rs 212.2 crore at FY26, and property, plant and equipment rose to Rs 82.6 crore from Rs 61.6 crore. The balance sheet does not assign the Rs 69.8 crore investing outflow to specific projects, but it reports both increases in non-current operating assets.

Current borrowings increased to Rs 275.4 crore from Rs 229.1 crore, whereas non-current borrowings declined to Rs 81.2 crore from Rs 90.4 crore. Shareholders' funds rose to Rs 508.1 crore from Rs 495.1 crore, while total assets declined to Rs 1,319.8 crore from Rs 1,424.2 crore.

Which expansion milestones could affect Sai Parenterals cash use?

Sai Parenterals has set a July 2027 target readiness date for Saicriti Pharma Pvt. Ltd.'s injectable facility at Gummadidala, with a total project cost of Rs 215 crore and planned capacity of about 154.66 million injectable units a year. Sai Parenterals holds 60% of Saicriti Pharma, and says the facility is being built to European Union Good Manufacturing Practice and United States Food and Drug Administration standards.

Layout design is complete, civil works are underway, and purchase orders have been placed for four process lines covering liquid and lyophilised injectables, pre-filled syringe and cartridge combi-filling, dry-powder filling, and ampoule filling. Utilities and heating, ventilation and air-conditioning engineering remain in progress, while long-lead equipment procurement follows the master schedule.

Separately, Unit III expansion was completed in Q2FY27 and is scheduled to ramp up from Q4FY27. Stated capacity rises 81% from 85.5 million units a month to 155 million units a month, while the H1FY27 cash-flow statement does not identify project-level allocations within its Rs 69.8 crore investing outflow.

Conclusion

Sai Parenterals paired higher reported H1FY27 revenue and EBITDA with a larger operating cash deficit. Revenue reached Rs 376.0 crore and EBITDA reached Rs 66.1 crore, but working-capital changes of Rs 254.5 crore resulted in a Rs 205.5 crore operating cash outflow. The Rs 253.5 crore increase in trade receivables and the fall in cash to Rs 129.3 crore are the most material reported balance-sheet movements.

The next disclosed operating milestones are the Unit III ramp-up from Q4FY27 and the July 2027 target readiness for the Rs 215 crore Saicriti injectable project. Subsequent disclosures can show whether receivables, inventories, cash balances, capital work-in-progress and operating cash flow change as those plans progress.