Sai Parenterals reports Q2 revenue of Rs 196 crore, PAT at Rs 11 crore

Hyderabad, Nov 1 (TNT): Hyderabad-based pharmaceutical company Sai Parenterals Limited on Sunday reported a consolidated revenue of Rs 196 crore and a net profit of Rs 11 crore for the second quarter of FY27, while announcing the completion of acquisitions of 60 per cent stakes in two pharmaceutical companies as part of its expansion strategy.

The company’s gross profit stood at Rs 93 crore, with a margin of 47.5 per cent, while EBITDA was Rs 41 crore, registering a margin of 21.1 per cent.

The profit after tax (PAT) margin was 5.4 per cent.

For the first half of FY27, consolidated revenue stood at Rs 376 crore, with gross profit of Rs 167 crore, EBITDA of Rs 66 crore and PAT of Rs 18 crore.

The company said the Q2 and H1 FY27 results included a full-quarter contribution from Noumed Pharmaceuticals, which was consolidated with effect from November 12, 2025.

As the corresponding periods in FY26 did not include a full-quarter contribution from Noumed, the year-on-year comparison was not like-for-like.

Sai Parenterals has completed the acquisition of 60 per cent stakes in Saicriti Pharma Private Limited and Prathyak Laboratories Private Limited following shareholders’ approval for variation in the utilisation of IPO proceeds.

The company invested Rs 98.8 crore of IPO proceeds in the acquisitions, including Rs 83.83 crore in Saicriti Pharma and Rs 15 crore in Prathyak Laboratories. The remaining Rs 3 crore, originally earmarked for a research centre, has been reallocated to general corporate purposes.

The company said the original objectives of the IPO, including developing EU-GMP-compliant injectable manufacturing capacity for regulated markets and a dedicated research and development platform, remained unchanged, with only the mode of execution being modified.

Construction of a new critical-care injectable facility of Saicriti Pharma at Gummadidala near Hyderabad is under way and is targeted for completion by July 2027.

The facility is expected to take the group’s injectable manufacturing capacity to around 155 million units and will be built to EU-GMP and USFDA standards, the company said in a release here.

Expansion at Sai Parenterals’ Unit III in Bhongir has been completed, increasing production capacity by 81 per cent from 85.5 million to 155 million units a month.

The expanded facility includes additional manufacturing lines for ointments, capsules and liquid oral products. Production is expected to ramp up from the fourth quarter of FY27, with most additional volumes catering to Australia and New Zealand.

Commenting on the results, Chairman and Managing Director Anil Kumar Karusala said revenue from operations increased nine per cent sequentially to Rs 196 crore in Q2FY27, while gross margin improved to 47.5 per cent from 40.9 per cent in the previous quarter.

First-half revenue of Rs 376 crore represented half of the company’s FY27 target of Rs 750 crore and was ahead of its planned revenue phasing between the first and second halves, he said.

The improvement in gross margin was driven by tighter inventory management and the introduction of first-in, first-out controls through a new ERP system, he said.

Depreciation and amortisation increased to Rs 25 crore in Q2 from Rs 8 crore in Q1, mainly due to capitalisation of the Unit III expansion and Noumed assets, consolidation of Saicriti Pharma and amortisation of molecules acquired from Sai Prathyak Laboratories.

Despite the increase, profit before tax remained steady sequentially, he said.

Australia accounted for 76 per cent of export revenue during the quarter, compared with 83 per cent in Q1.

The company also added 11 molecules and 22 stock-keeping units in the Philippines market during the quarter.

The company’s Adelaide facility is expected to commence operations in January 2027, with commercial supplies likely from April.

Sai Prathyak Laboratories, which will house the group’s R&D activities, is expected to begin taking external contract development and manufacturing organisation assignments over the next two quarters, Karusala said.

He said FY27 would be a year of capacity building, with the benefits of the expansion expected to reflect in the company’s performance from FY28.

TNT TS