Sai Parenteral's Q2 profit rises to Rs 10.51 crore

SAI PARENTERAL'S LIMITED reported consolidated profit after tax of Rs 10.51 crore for the quarter ended 30 September 2026, compared with Rs 6.35 crore a year earlier, as revenue from operations increased to Rs 194.018 crore from Rs 53.528 crore. However, Sai Parenteral's reported a Rs 205.46 crore operating cash outflow for the first half.

How did Sai Parenteral's perform in Q2 2026?

Sai Parenteral's reported higher consolidated revenue and profit in the quarter ended 30 September 2026. Revenue from operations was Rs 194.018 crore, up from Rs 178.672 crore in the quarter ended 30 June 2026 and Rs 53.528 crore in the quarter ended 30 September 2025. Total income, including other income, was Rs 198.637 crore, against Rs 182.013 crore in the preceding quarter and Rs 54.863 crore a year earlier.

Profit after tax rose to Rs 10.51 crore from Rs 7.923 crore in the June 2026 quarter and Rs 6.35 crore in the September 2025 quarter. Profit before tax was Rs 9.889 crore, compared with Rs 9.75 crore sequentially and Rs 9.154 crore a year earlier. The quarter included current tax of Rs 1.615 crore and a deferred-tax credit of Rs 2.236 crore.

Sai Parenteral's basic and diluted earnings per share were Rs 2.38 for the September 2026 quarter, against Rs 1.79 in the June 2026 quarter and Rs 0.48 a year earlier. The company said quarterly earnings per share had not been annualised. It also reported no exceptional or extraordinary items in the September 2026 quarter.

What changed in Sai Parenteral's costs and half-year results?

Sai Parenteral's total expenses reached Rs 188.708 crore in the September 2026 quarter, up from Rs 172.623 crore in the June quarter and Rs 45.709 crore a year earlier. Cost of materials consumed was Rs 82.244 crore, compared with Rs 116.123 crore sequentially and Rs 20.038 crore in the year-earlier quarter. The sequential reduction in materials costs occurred while quarterly revenue increased by Rs 15.346 crore.

Depreciation and amortisation increased to Rs 25.09 crore from Rs 8.11 crore in the June 2026 quarter and Rs 1.436 crore a year earlier. Other expenses were Rs 38.814 crore, against Rs 37.386 crore in the preceding quarter, while finance costs declined to Rs 8.982 crore from Rs 9.36 crore. Employee-benefit expense was Rs 12.855 crore, compared with Rs 3.99 crore in the September 2025 quarter.

For the half year ended 30 September 2026, Sai Parenteral's revenue from operations was Rs 373.59 crore, against Rs 86.918 crore in the corresponding prior-year period. Half-year profit after tax was Rs 18.433 crore, compared with Rs 7.764 crore a year earlier. The company identified one reportable segment under Indian Accounting Standard 108: branded generic formulations and contract development and manufacturing organisation, or CDMO, products and services for domestic and international markets.

Why was Sai Parenteral's operating cash flow negative?

Sai Parenteral's net cash outflow from operating activities was Rs 205.46 crore for the half year ended 30 September 2026, compared with an outflow of Rs 66.012 crore in the corresponding 2025 period. Operating profit before working-capital changes was positive at Rs 53.19 crore, up from Rs 17.96 crore a year earlier. Working-capital movements nevertheless resulted in cash generated from operations of negative Rs 201.298 crore.

The largest disclosed working-capital movement was a Rs 113.142 crore decrease in other financial liabilities. Trade and other receivables used Rs 73.492 crore of cash, other current assets used Rs 11.117 crore, and inventories used Rs 7.485 crore. Trade payables and other liabilities declined by Rs 21.667 crore, while net taxes paid were Rs 4.162 crore.

The balance sheet records trade receivables of Rs 254.525 crore at 30 September 2026, compared with Rs 181.033 crore at 31 March 2026. Inventories rose to Rs 182.204 crore from Rs 171.814 crore over the same period. Cash and cash equivalents declined to Rs 129.33 crore from Rs 416.966 crore, reflecting the half-year cash movements reported in the consolidated cash-flow statement.

How did Sai Parenteral's investing and financing flows affect cash?

Sai Parenteral's investing activities used Rs 69.838 crore in the first half of 2026, compared with Rs 4.801 crore in the prior-year half. Purchases of property, plant and equipment used Rs 20.477 crore, capital work-in-progress used Rs 29.166 crore, and financial assets used Rs 23.844 crore. Interest received was Rs 5.094 crore.

Financing activities produced a net outflow of Rs 12.338 crore, whereas the corresponding prior-year period had an inflow of Rs 84.147 crore. Net short-term borrowings provided Rs 11.083 crore and net long-term borrowings provided Rs 1.589 crore, while finance costs used Rs 17.881 crore. The company also recorded negative Rs 3.851 crore under proceeds from security premium on issue of shares in its cash-flow statement.

Combined operating, investing and financing flows resulted in a Rs 287.636 crore decrease in cash and cash equivalents during the half year, compared with a Rs 13.334 crore increase in the corresponding 2025 period. The opening cash balance was Rs 416.966 crore on 1 April 2026 and the closing balance was Rs 129.33 crore on 30 September 2026.

Conclusion

Sai Parenteral's September-quarter filing shows a substantial year-on-year rise in revenue and profit, with revenue from operations increasing by Rs 140.49 crore and profit after tax increasing by Rs 4.16 crore. The half-year figures also show profit growth, but operating cash generation moved in the opposite direction because receivables, other current assets, inventories and financial liabilities absorbed cash.

The next disclosed event to watch is Sai Parenteral's proposed cash acquisition of the remaining 25% stake in SP Analytics Private Limited for Rs 25,000. Sai Parenteral's said the transaction, which would make SP Analytics Private Limited a wholly owned subsidiary, is expected to be completed on or before 31 December 2026.