Sai Life rallies 5%, hits all-time high; what's driving pharma stock?

In H1FY26, total revenue of the Sai Life Sciences increased by 53% YoY at ₹1,034 crore, driven by healthy growth across both the CRO and the CDMO business.

Share price of Sai Life Sciences today

 

Shares of Sai Life Sciences hit an all-time high of ₹966.10, as they rallied 5 per cent on the BSE in Monday’s intra-day trade on expectation of healthy earnings. In comparison, the BSE Sensex was down 0.02 per cent at 85,743 at 12:17 PM.

 

The stock of the pharmaceutical company surpassed its previous high of ₹943 touched on August 25, 2025. Currently, the stock trades 76 per cent higher as against its IPO price of ₹549 per share. Sai Life Sciences made its stock market debut on December 18, 2024.

 

What’s driving Sai Life Sciences stock price?

 

Sai Life Sciences is a Hyderabad-based innovator-focused Contract Research, Development & Manufacturing Organization (CRDMO) founded in 1999, offering integrated services across the drug discovery and development lifecycle. The company combines a differentiated global delivery model with a robust India-based manufacturing footprint, enabling cost-efficient development and commercial supply for pharma & biotech clients.

 

 

CRDMO industry comprises - Contract Research Organizations (CROs) and Contract Development and Manufacturing Organizations (CDMOs).

 

In the first half (April to September) of the financial year 2025-26 (H1FY26), total revenue of the company increased by 53 per cent year-on-year (YoY) at ₹1,034 crore, driven by healthy growth across both the CRO and the CDMO business. EBITDA margin improved 650 bps, 27 per cent, driven by better utilization, operating leverage, and continued cost discipline.

 

The CDMO business contributed 64 per cent of the total revenue, and recorded 72 per cent YoY growth at 667 crore, supported by a continuous scale-up of late-stage and commercial programs.

 

Sai Life is currently in the process of scaling up its total installed capacity from approximately 700 KL to 1150 KL by the end of FY27, which will further enhance the company’s ability to serve growing client needs across clinical and commercial manufacturing. The focus going forward will be on improving asset productivity, optimizing working capital, and continuing to strengthen the company’s margin profile, the management said in Q2 earnings conference call.

 

With increasing prominence of Indian CRDMOs in the global markets and increased outsourcing of small molecules, the dominance of small molecules is expected to continue despite increasing demand for large molecules. The Indian small molecule CRDMO industry size is estimated to increase to $12.8 billion by 2028 at 13.7 per cent compound annual growth rate (CAGR) from 2023 to 2028, the company said in its FY25 annual report.  CATCH STOCK MARKET LIVE UPDATES TODAY

JM Financial’s view on Indian CRDMO industry, Sai Life

 

The listed Indian CRDMO players have entered a sustained growth phase (17 per cent revenue CAGR over FY25-28E for leading listed players), supported by recurrent contract wins, the addition of new global clients, expanding manufacturing capacities, and the adoption of advanced technologies. 

 

The sector is benefiting from a structural shift in outsourcing by global innovators who are increasingly seeking cost-efficient, high-quality partners with proven regulatory and compliance track records, according to analysts at JM Financial Institutional Equities.

 

This robust outlook has driven a re-rating of valuation multiples, reflecting the market’s recognition of improving visibility on long-term revenue growth, margin expansion, and diversification across customer and molecule portfolios. The sector’s evolution from pure-play API manufacturing to integrated CRDMO partnerships are firmly positioning Indian players as credible global alternatives to their Western and Chinese counterparts, the brokerage firm said in the October 31, 2025 sector report.

 

For Sail Life, the CDMO segment forms the key growth driver, with a portfolio of 170+ products, with 50 in late-stage or commercial phases (including at least 7 blockbuster drugs). The company’s wallet share of the end market too has been rising, the brokerage firm said with a ‘BUY’ rating on stock and target price of ₹1,197 per share. Analysts expect the CDMO segment to grow at 26 per cent CAGR over FY25–28, making Sai the fastest-growing CRDMO in India.    ============================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.