Sai Life Sciences gains 4%, stock snaps 4-day losing streak; here's why

Sai Life stock outlook: Given its high-growth outlook and improving profitability, analysts at JM Financial value the stock at 32x Sept 2027 EBITDA to arrive at a target price of ₹1,197.

Share price of Sai Life Sciences today

 

Shares of Sai Life Sciences rallied 4 per cent to ₹904 on the BSE in Monday’s intra-day trade, wiping-out its entire previous week’s decline. The stock price of the pharmaceutical company had traded lower in the previous four straight trading sessions. 

At 10:20 AM; Sai Life Sciences share price was quoting 3.3 per cent higher at ₹899.60, as compared to 0.27 per cent rise in the BSE Sensex. The stock had hit a 52-week high of ₹943 on August 25, 2025.

Company overview, Q2 results

 

Sai Life Sciences is one of India’s fastest-growing Contract Research, Development & Manufacturing Organizations (CRDMO). With a team of over 3,400 professionals, Sai Life Sciences partners with more than 300 global innovators, including 18 of the top 20 pharmaceutical companies, to accelerate the discovery, development, and commercialization of complex small molecules.

 

In the July to September 2025 quarter (Q2FY26), the company’s total revenue stood at ₹537 crore, up 36 per cent year-on-year (YoY), driven by healthy performance across both the CRO and CDMO (Contract Development and Manufacturing Organization) services. EBITDA for the quarter was ₹156 crroe, with margins at 29 per cent, supported by improved operating leverage, better utilization and continued cost discipline.

 

The stellar quarter was primarily driven by performance in the CDMO segment (66 per cent of sales); growing 37 per cent YoY on the back of late stage and commercial projects.   ALSO READ | Glenmark Pharma shares rise after 72% Q2 profit jump; check outlook here 

While the CRO (Contract Research Organization) segment (34 per cent of sales) showcased resilience amidst the volatile bio-tech funding environment, sustaining high double-digit growth of 19 per cent. This feat was enabled by the high proportion of pharma in Sai’s CRO clientele. Further, CDMO led-growth allowed the company to expand EBITDA margins by 129bps YoY to come in at 27.1 per cent.

 

Sai successfully closed 35 customers and 3 regulatory audits across its units in the past 12 months with zero critical observations. In the CDMO segment, the company has read outs lined up for a couple of its products in the coming months and the pipeline trend looks favourable for the coming year. Sai is also currently validating an oligo product for a large pharma, though it is likely to take 15-18 months for the product to become commercial, and has another promising oligo in phase 3.  ALSO READ | TMPV share price tumbles on JLR hit in Q2; analysts cut outlook, flag structural risks

JM Financial Institutional Securities view on Sai Life Sciences

 

Given its high-growth outlook and improving profitability, analysts at JM Financial Institutional Securities value the stock at 32x September 2027 EBITDA to arrive at a target price of ₹1,197 and maintain 'BUY' rating on the stock.

 

The strong Q2 underpins the company’s expanding commercial portfolio, with a growing focus on late-stage/commercial projects, and increasing wallet share of the end market - in our understanding, revenue per commercial drug increasing from ~$2.7 million in FY22 to an estimated ~$3.4 million in FY25, potentially reaching ~$5.5 million by FY28. This growth trajectory positions Sai as the fastest-growing CRDMO in India, with a projected rev/EBITDA/PAT CAGR of 23 per cent/30 per cent/41 per cent over FY25–28, the brokerage firm said in the Q2 result update.