Sai Life Sciences Q2 FY27 Results Analysis: Revenue Jumps 22.53%, EBITDA Margin Recovers (SAILIFE)
Sai Life Sciences Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 658.59 Cr (+22.53% YoY) and PAT growth of +17.26% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 05, 2026 |
|---|---|
| Revenue (Q2) | Rs. 658.59 Cr (+22.53% YoY) |
| PAT (Q2) | Rs. 98.32 Cr (+17.26% YoY) |
| EBITDA margin | 28.90% (-108 bps YoY) |
| EPS (Q2) | Rs. 4.63 (+15.46% YoY) |
Quarter Snapshot
Q2 FY27 revenue grew 22.53% YoY with EBITDA margin re-entering the guided 28-30% band at 28.90%, and H1 revenue growth of 17.31% tracks the 15-20% multi-year CAGR guidance. The heavy capex cycle (H1 capex Rs.561.29 Cr) is debt-funded, taking net debt to Rs.417.32 Cr and free cash flow to -Rs.371.16 Cr, making the H2>H1 revenue inflection and year-end debt-to-EBITDA commitment the key upcoming tests.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue | "In-line with the guided trajectory at best" | +22.53% YoY, +18.82% QoQ — better than expected | Played out |
| CDMO re-acceleration | Needed to close the Q1 gap | Not disclosed in filing | Not observable |
| Margins | "Likely compress or stay flat below the 28–30% band" | 28.30% — re-entered the band QoQ — favourably | Contradicted |
| Freight/energy drag | Q1→Q2 bridge dominated by freight/energy | Material margin −39 bps QoQ; other expenses +22.1% QoQ | Partially |
| Capex shifts to debt | "Necessarily shifts the mix toward debt" | Borrowings Rs.95.13 → Rs.448.24 cr; Rs.353.12 cr net raised in H1 | Played out |
| Destocking provision reversal | Watch for further reversals (Rs.16 cr reversed in Q3 FY26) | Exceptional line nil; no reversal disclosed | Not observable in filing |
| Capacity milestones Sep/Oct 2026 | Completion status sought | Not addressed in the filing — remains open for the call | Not observable |
| H2 > H1 test | "Likely stays a Q3/Q4 question" | Q2 > Q1 sequentially — consistent | Too Early |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| Revenue 15–20% CAGR, 3–5 yrs (FY25 base) | Reiterated on the Q1 FY27 earnings call | +22.53% YoY in Q2; +17.30% YoY in H1 | On Track |
| EBITDA margin 28–30% sustained | Q1 FY27 call — "We remain confident in our ability to sustain… EBITDA range of 28–30%" | 28.30% in Q2 (26.70% in Q1) — back inside the band | On Track |
| FY27 capex Rs.1,100–1,300 cr | Q1 FY27 call — "That still stands" | Rs.561.29 cr in H1 (43–51% of the range) | On Track |
| H2 FY27 revenue > H1 | Management commentary on the Q1 FY27 call | Q2 Rs.658.59 cr > Q1 Rs.554.29 cr; H1 Rs.1,212.87 cr | Too Early |
| "Healthy" debt-to-EBITDA by FY27-end | Q4 FY26 / Q1 FY27 calls | Net debt Rs.417.32 cr = 1.25× H1 EBITDA | On Track |
Key Investment Insights
Key Positives
- Revenue grew 22.53% YoY to Rs.658.59 Cr and 18.82% QoQ, re-accelerating from Q1's +11.7% YoY / -7.95% QoQ
- EBITDA margin of 28.90% re-entered management's guided 28-30% band, up 157 bps QoQ from 27.34%
- EBITDA excluding other income grew 27.81% YoY to Rs.186.38 Cr, the cleaner operating read
- Materials cost (+17.14% YoY) and other expenses (+12.09% YoY) grew slower than revenue (+22.53% YoY)
- H1 operating cash flow after tax of Rs.190.13 Cr was 1.11x PAT, up from 0.64x in H1 FY26
- Trade receivables fell 8.41% since March while H1 capex of Rs.561.29 Cr tracked 43.2-51.0% of the Rs.1,100-1,300 Cr FY27 plan
- H1 revenue growth of +17.31% YoY sits inside the guided 15-20% multi-year CAGR corridor
Risk Factors
- Free cash flow was negative at -Rs.371.16 Cr in H1 FY27, with net debt rising to Rs.417.32 Cr (≈1.22x H1 EBITDA) from Rs.13.21 Cr in March
- Finance costs rose 43.28% QoQ to Rs.10.94 Cr on the debt-funded capex program
- EBITDA margin of 28.90% remained 108 bps below the year-ago quarter's 29.98%
- Inventories rose 60.33% since March to Rs.242.05 Cr, tying up Rs.91.08 Cr of operating cash in H1
- Cash and cash equivalents fell from Rs.81.91 Cr to Rs.30.92 Cr over the half-year
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.