Sai Life soars 10%, hits record high on strong Q2 earnings

Sai Life Sciences continues to expect a stronger second half, supported by the progression of the development and commercial pipeline and the ramp-up of new capacity.

Sai Life Sciences share price movement

 

Sai Life Sciences’ share price hit a record high of ₹1,775, spurting 10.3 per cent on the National Stock Exchange (NSE) in Friday’s intraday trade amid heavy volume after reporting strong earnings for the July to September 2026 quarter (Q2FY27). 

 

The stock price of one of India’s fastest growing Contract Research, Development and Manufacturing Organizations (CRDMO) Company surpassed its previous high of ₹1,697 touched on September 9, 2026.

 

At 10:12 AM, Sai Life quoted 10 per cent higher at ₹1,757, compared to a 0.47 per cent rise in the Nifty 50. However, Nifty Midcap 100 and Nifty Smallcap 100 indices were down 1 per cent and 1.6 per cent, respectively. The average trading volume at the counter jumped over 10-fold with a combined 3.4 million shares changing hands on the NSE and BSE.

 

 

Sai Life Sciences – Q2 results

 

For Q2FY27, Sail Life Sciences reported a healthy performance, with revenue growth of 23 per cent year-on-year (YoY) to ₹659 crore. The performance was broad-based, with both CRO and CDMO delivering healthy growth, while earnings before interest, tax, depreciation and amortization (EBITDA) margins stood at 28 per cent.  Profit after tax jumped 17 per cent YoY to ₹98 crore. 

 

The management said it continues to expect a stronger second half, supported by the progression of the development and commercial pipeline and the ramp-up of new capacity. The company’s capacity and capability expansion programme remains on track with a total of ₹621 crore invested in H1FY27, it added.

 

“We see growing traction with global pharmaceutical companies, increasing adoption of our integrated outsourcing model, and continued progress in building the capacity and capabilities required to support customers over the long term. Importantly, we are seeing customer engagements evolve from individual projects into larger, more strategic relationships spanning discovery, development and manufacturing,” the management said.

 

PL Capital's view on Sai Life Sciences

 

Sai Life Sciences has built an integrated CRDMO platform spanning discovery, development and manufacturing, with a proven track record of supporting complex pharma and biotech programs. It is well placed to benefit from the shift toward outsourcing in small molecules, given its integrated capabilities across discovery, development and manufacturing and strong process chemistry expertise. 

 

Analysts at PL Capital initiated coverage on the stock in October 2026. They see large-pharma engagements as the key near-term growth driver, with the discovery platform providing a steady funnel of projects that can move into development and subsequently commercial manufacturing. The deep late-stage and commercial pipelines should further support growth. Planned capex of ₹1,100-1,300 crore for FY27E and rising wallet share from existing customers provide additional upside, the brokerage firm said. 

 

The brokerage forecasts revenue/EBITDA/PAT compound annual growth rate (CAGR) of 21 per cent/25 per cent/26 per cent over FY26–29E led by 23 per cent growth in CDMO services and 16 per cent in CRO. With a strong pipeline moving toward commercial supply and a scalable integrated model, analysts believe Sai Life offers one of the best growth profiles among listed Indian CRDMOs. However, currently, the stock quoted above PL Capital’s initiated target price of ₹1,620 per share. Disclaimer: Views and outlook in this report belong to the brokerages and analysts cited. They do not reflect the views of Business Standard. Readers are advised to exercise discretion.