Sai Parenterals funds Saicriti, targets July 2027 plant

Sai Parenterals Limited has completed a 60% Saicriti Pharma Private Limited acquisition with Rs 83.83 crore of initial public offering (IPO) proceeds and targets July 2027 for its injectable plant. The planned European Union Good Manufacturing Practice (EU-GMP) and US Food and Drug Administration (USFDA)-standard site would provide approximately 154.66 million units and replace Jeedimetla Units I and II.

How did Sai Parenterals fund the Saicriti acquisition?

Sai Parenterals funded its 60% Saicriti acquisition with Rs 83.83 crore of IPO proceeds after shareholders approved a variation in the objects of the issue. The company completed the transaction alongside its purchase of a 60% stake in Prathyak Laboratories Private Limited, renamed Sai Prathyak Laboratories Private Limited, for Rs 15 crore on 5 October 2026.

The two acquisitions used Rs 98.8 crore of IPO proceeds, with Saicriti receiving the larger allocation. Sai Parenterals reallocated Rs 3 crore that had been earmarked for a research centre to general corporate purposes, while saying the purpose of the fundraise remained EU-GMP-compliant injectable capacity for regulated markets and a dedicated research and development platform.

Saicriti is a majority-held business under the disclosed 60% transaction. The Gummadidala plant remains under construction with a July 2027 completion target, rather than an operating asset, and Sai Parenterals has not disclosed the project cost.

What is planned at Saicriti’s Gummadidala injectable plant?

Sai Parenterals plans a critical-care injectable facility at Gummadidala, outside the Outer Ring Road, with completion targeted for July 2027. Foundation work is under way, the layout is complete, and management said construction would accelerate following the equity infusion into Saicriti.

The facility is planned to have four process lines: liquid and lyophilised injectables; pre-filled syringe and cartridge combi-filling for glucagon-like peptide-1 (GLP-1) products; dry-powder filling; and ampoule filling. Purchase orders have been placed for all four lines, while clean utilities and heating, ventilation and air-conditioning (HVAC) systems remain in detailed engineering.

On completion, the facility is expected to take injectable capacity to approximately 154.66 million units. Sai Parenterals said the plant would meet EU-GMP and USFDA standards, but did not provide a separate commissioning date, expected facility revenue or the capacity currently operated at Jeedimetla.

How will the Saicriti plant change Sai Parenterals’ manufacturing network?

Sai Parenterals intends to discontinue Units I and II at Jeedimetla once the Saicriti facility is commissioned. The stated 154.66 million-unit injectable capacity is therefore tied to a replacement of existing manufacturing operations, and the release does not quantify the capacity of the two units scheduled to close.

The project sits alongside the completed Unit III expansion at Bhongir, which raised production capacity by 81% from 85.5 million to 155 million units a month. Unit III added an ointment tank and automated tube-filling line, a capsule-blending suite with high-speed filling, and liquid-oral manufacturing and filling lines, which are different dosage formats from Saicriti’s injectable lines.

Unit III output is scheduled to ramp from Q4 FY27, or the fourth quarter of fiscal year 2027, with most additional volume intended for Australia and New Zealand. Saicriti’s July 2027 milestone comes later, although Sai Parenterals has not specified when commercial supply from the injectable facility would begin.

Sai Parenterals has also consolidated group research and development at Sai Prathyak, whose Genome Valley centre has 28 research scientists, 174 molecules and 285 stock-keeping units (SKUs) across critical care and oncology. Pre-acquisition molecules remain with the seller, while the group may use them for its manufacturing and Saicriti is entitled to transfer them to its upcoming site.

What financial context surrounds Sai Parenterals’ capex plan?

For the second quarter of fiscal year 2027 (Q2 FY27), Sai Parenterals reported consolidated revenue from operations of Rs 196.1 crore, up 9.0% from Rs 179.9 crore in the first quarter of fiscal year 2027 (Q1 FY27). Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 67.4% sequentially to Rs 41.4 crore, while its margin increased to 21.1% from 13.7%.

Gross profit increased to Rs 93.1 crore in Q2 FY27 from Rs 73.7 crore in Q1 FY27, and gross margin rose from 40.9% to 47.5%. Management attributed the change to consumption of higher-cost inventory from earlier periods and first-in, first-out controls introduced through a new enterprise resource planning system.

Depreciation and amortisation rose to Rs 25.1 crore in Q2 FY27 from Rs 8.1 crore in Q1 FY27, reflecting capitalisation of the Unit III expansion and Noumed assets, Saicriti’s consolidation, and amortisation of molecules acquired from Sai Prathyak. Despite the increase, profit after tax rose 32.7% sequentially to Rs 10.5 crore.

First-half FY27 revenue was Rs 376 crore, approximately 50% of management’s Rs 750 crore FY27 revenue target and ahead of its stated 45:55 first-half-to-second-half phasing. The company cautioned that year-on-year comparisons are not like-for-like because Q2 and first-half FY27 include a full quarter of Noumed Pharmaceuticals, which began consolidation on 12 November 2025.

Conclusion

Sai Parenterals has committed Rs 83.83 crore of IPO proceeds to a majority stake in Saicriti and a planned 154.66-million-unit injectable facility. The transaction is accompanied by a Rs 15 crore investment in Sai Prathyak, bringing a 28-scientist research centre and 174-molecule portfolio into the group, while Unit III supplies separate oral, capsule and ointment capacity.

The next disclosed milestones are Unit III’s output ramp from Q4 FY27, Adelaide operations from January 2027 and expected commercial supply around April 2027, followed by Saicriti’s targeted July 2027 completion. Progress from foundation work and detailed engineering into commissioning, as well as the planned discontinuation of Jeedimetla Units I and II, remain the key execution matters disclosed by management.