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Sai Parenterals Limited — Q4 FY26 earnings call

Call held 27 May 2026

Management summary

Sai Parenterals reported a transformational FY26, marked by a successful IPO and the strategic acquisition of Noumed Pharmaceuticals, which significantly expanded its global footprint and capabilities. Consolidated revenue grew 133% to INR381 crore, driven by strong CDMO export business and the partial consolidation of Noumed. The company is executing a substantial INR440 crores capex program, with full financial impact expected from FY28 onwards, targeting INR750 crores revenue and 17% EBITDA margin for FY27.

Highlights

  • FY26 consolidated revenue of INR381 crore, representing 133% growth.

  • FY26 standalone PAT grew 64% over FY25 to INR17 crores.

  • Acquisition of Noumed Pharmaceuticals significantly expanded capabilities, market access, and growth opportunities.

  • Secured new long-term CDMO export contracts, with over 50% consolidated revenue from long-term supply contracts in regulated markets.

  • Approvals for 88 dossiers across regulated and emerging markets in FY26, plus 5 additional dossiers from Noumed in Q4 FY26.

Concerns

  • No incremental revenue from the INR440 crores capex program is expected in FY27, as facilities will be commissioned towards the end of the year.

  • Consolidated profit before tax showed degrowth in Q4 FY26 due to the acquisition's initial impact and tax adjustments.

Key financials

  1. Consolidated FY26 Revenue ₹381 Cr +133%YoY
  2. Consolidated FY26 EBITDA ₹47 Cr +18%YoY
  3. Consolidated Q4 FY26 Revenue ₹198 Cr
  4. Consolidated Q4 FY26 EBITDA ₹29 Cr
  5. Consolidated Q4 FY26 EBITDA Margin 15%
  6. Consolidated Q4 FY26 PAT ₹13 Cr
  7. Consolidated Q4 FY26 PAT Margin 6.6%
  8. Standalone FY26 Revenue ₹162 Cr
  9. Standalone FY26 EBITDA ₹33 Cr
  10. Standalone FY26 EBITDA Margin 21%
  11. Standalone FY26 PAT ₹17 Cr +64%YoY
  12. Standalone FY26 PBT ₹18.85 Cr
  13. Standalone FY25 PBT ₹14.4 Cr

What they filed

Q1 FY27: revenue up 435.1%, net profit up 457.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue33 87 96 198 179 +435%
EBITDA5 16 -4 26 24 +396%
Net profit1 8 -7 13 8 +458%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

high confidence
  • Capex AUD 40 Mn this quarter · ₹440 Cr (FY27) planned INR111 crores and INR18 crores from IPO proceeds. AUD53 million from AUD20 million grant, debt and internal accruals.
    • Capacity expansion and EU GMP upgrades in India ₹111 Cr
    • Dedicated R&D center in India ₹18 Cr
    • Adelaide manufacturing facility expansion in Australia AUD 53 Mn
    First, the completion of INR440 crores ongoing capex program started with Noumed. This includes the capacity expansion and EU GMP upgrades in India, commercialization of the Adelaide facility in Australia to support vertical integration and long-term supply agreements, and the establishment of a dedicated R&D center focused on formulation development and dossier creation in India. ... Out of this, about INR111 crores is being deployed towards capacity expansion and EU-GMP upgrades at our manufacturing facilities in India. This funding is being done entirely through the IPO proceeds. In addition, there is an INR18 crores being invested towards establishing a dedicated R&D center in India. This investment is also being funded through the IPO proceeds. As part of the acquisition, we took ownership of the Adelaide manufacturing facility expansion project in Australia, which involves the total planned capex investment of about AUD 53 million or INR311 crores. The project has received grant of almost AUD20 million from the Federal Australian Government. The balance is being funded through a combination of debt and internal accruals. AUD 40 million has been invested in the project till-date.
  • Debt Gross ₹319 Cr
    Our balance sheet remains well positioned to support our growth plans. Following the successful IPO and fresh capital infusion, we have significantly strengthened our capital base. As of March 26, the total debt stood at about INR319 crores, comprising of INR90 crores of long-term borrowings and INR229 crores of short-term borrowings. FY '27 is expected to be the peak year of debt for the group as we complete our ongoing capex programs. However, these assets will begin contributing to earnings and cash flows in FY28. Therefore, we expect debt levels to decline from FY '28 onwards. Even at peak debt level, the group's debt-to-equity ratio is comfortable at about 0.6 times.
  • M&A Noumed Pharmaceuticals Acquisition · Closed

    Significantly expanded capabilities, market access, and growth opportunities, transforming Sai from a manufacturing-led business into a global IP-led platform.

    Noumed's financials have been consolidated from November 12, 2025, contributing to 4.5 months of consolidated results in FY26.

    Financial year '26 has been a transformational year for the company. Alongside, a successful public listing, we completed the acquisition of Australian-based Noumed Pharmaceuticals, significantly expanding our capabilities, market access, and growth opportunities. ... Then moving to consolidated results, FY '26 marks a major milestone for the company following the acquisition of Noumed, which was acquisition was completed on 12th November, 2025. Accordingly, Noumed's financials have been consolidated from the date of acquisition, which do not reflect a full year contribution but effective from 12th November, 2025.
  • Liquidity Liquidity disclosed IPO proceeds were utilized to fund a portion of the capex program in India.
    This funding is being done entirely through the IPO proceeds.

Guidance & targets

Revenue

  • Consolidated Revenue Revenue · FY27 · High confidence INR750 crores
    Based on these drivers, we are targeting a revenue of INR750 crores for the financial year '27 with an EBITDA margin in the range of 17% in FY '27.

    — Anil Kumar Karusala

Profitability

  • Consolidated EBITDA Margin Profitability · FY27 · High confidence 17%
    Based on these drivers, we are targeting a revenue of INR750 crores for the financial year '27 with an EBITDA margin in the range of 17% in FY '27.

    — Anil Kumar Karusala

Product Pipeline

  • Commercialization of dossiers under development Product Pipeline · FY27 and FY28 · Medium confidence 67 dossiers
    In addition, 67 dossiers are currently under development at Sai in various stages, and they are expected to be commercialized during financial year '27 and financial year '28, providing strong visibility for future growth.

    — Anil Kumar Karusala

Operations

  • Noumed Australian manufacturing facility operational Operations · Q4 FY27 · High confidence Operational
    As our Australian manufacturing facility becomes operational in Q4 FY '27, we intend to progressively internalize a meaningful portion of this production, significantly improving margins, enhancing supply chain control, and strengthening customer relationships.

    — Anil Kumar Karusala

Regulatory

  • TGA license for Noumed Australian plant Regulatory · No later than March 31 next year (2027) · High confidence Commissioned and up
    TGA license is expected to be commissioned and up and flowing no later than the 31st of March next year.

    — Mark Thulborne

Working Capital

  • Working capital requirement for additional revenues Working Capital · Ongoing · Medium confidence 25% to 30%
    Generally, as a pharma business, we would look at about 25% of additional revenues as the working capital requirement. So as we scale up businesses, we would look at working capital requirement of about 25% to 30% range.

    — Anil Kumar

What to watch in Q1 FY27

Noumed Australian facility commissioning & TGA license

Q1 Australian calendar year (Jan-Mar 2027) / by March 31, 2027
Current Validation in Oct/Nov 2026, TGA license by March 31, 2027
Target Commercial operations commenced, TGA license secured

Why it matters

Essential for vertical integration, supply chain control, and realizing value from the Noumed acquisition.

TGA license is expected to be commissioned and up and flowing no later than the 31st of March next year.

Q&A highlights

8 direct
Consolidated PBT degrowth in Q4 FY26 Direct
So you are referring to the consolidated financial statements or you are referring to Sai standalone financial statements? ... For Standalone Financials, the profit before tax is at INR18 crores INR18.85 crores, and FY '25 is about INR 14.4 crores.

Clarifies that standalone PBT actually grew, addressing an initial concern about consolidated numbers which were impacted by the Noumed acquisition and tax adjustments.

Asked by Vihaan Bagri

Noumed plant ramp-up timeline Direct
Commissioning of validation shall commence in October, November of this year with the starting point being on packing of solid dosage forms and moving into liquids manufacturing through quarter one of the Australian calendar year, so that's your last quarter of January through to March of next year. TGA license is expected to be commissioned and up and flowing no later than the 31st of March next year.

Provides specific timelines for the operationalization and regulatory approval of the key Australian facility, crucial for vertical integration benefits.

Asked by Vihaan Bagri

Strategic execution priorities for the company Direct
So we have the three top priorities is our CDMO, which we were effectively planning to in delivering growth for the markets... The second priority is now the integration of our Australian and New Zealand platforms... So and the third important is our branded formulation business...

Outlines the core strategic pillars for future growth, emphasizing CDMO and Noumed integration.

Asked by Vihaan Bagri

Breakup of capex in India and Australia and amount deployed Direct
we have planned for about INR110 crores of capex in Sai, plus there is an additional capex investment of INR18 crores in R&D... For the Noumed facility, the capex expected is about AUD53 million... AUD 40 million has been invested in the project till-date.

Provides a detailed breakdown of the significant capex program, its funding, and progress, which is central to future growth.

Asked by Hiral Sanghvi

Incremental revenue expected from the capex program Direct
For the year FY '27, ma'am, we don't see any incremental revenue coming out of this... because all the capex investment are going to be completed by end of the FY '27... So the impact of this will be coming up in the FY '28 and FY '29.

Clarifies that the substantial capex will not contribute to FY27 revenue, setting expectations for investors and highlighting FY28/FY29 as the monetization period.

Asked by Hiral Sanghvi

Conservative FY27 revenue guidance (INR750cr vs annualized Q4 of INR800cr) Direct
my usually my our business have Q3 and Q4 little heavy when compared to Q1 and Q2... So that's the reason in Q4, usually we see 40-60... So that's the reason you see there's a higher number of INR198 crores in Q4. Otherwise, in H1 there will be little low when compared to the H2.

Explains the seasonality of the business, justifying the conservative full-year guidance despite a strong Q4, and manages investor expectations.

Asked by Sivaramakrishna

Reason for projected EBITDA margin increase from 14.6% (Q4 FY26) to 17% (FY27 guidance) Direct
this Noumed integration, which we have done in Q4... Noumed currently is getting manufactured its products from various CMO manufacturers across India. So what we are going to do is... most of these products we will start shifting it to our own manufacturing in Sai, which will give the impact of that additional margin coming in into Noumed.

Details the key driver for margin expansion – vertical integration of Noumed's manufacturing into Sai, reducing reliance on CMOs.

Asked by Sivaramakrishna

Explanation for tax write-back/deferred tax leading to negative tax line in FY26 profit Direct
there are two components of the tax being shown negative. One is the deferred tax asset being created. Second is the company has moved from the old tax regime to the new tax regime... Earlier the company was paying a basic tax rate of 25%, now it will pay about 22%.

Clarifies the accounting and tax policy changes that impacted the reported PAT, providing transparency on the tax line.

Asked by Sivaramakrishna

3 min read 7 chapters

Detailed narrative

Transformational FY26 & Strategic Noumed Acquisition

FY26 was a landmark year for Sai Parenterals, marked by a successful public listing and the strategic acquisition of Australian-based Noumed Pharmaceuticals. This acquisition, completed on November 12, 2025, significantly expanded the company's capabilities, market access, and growth opportunities, transforming Sai from a manufacturing-led business into a global IP-led platform. The integration provides access to Australia and New Zealand markets and a portfolio of 451 IP dossiers.

Integrated Pharma Platform & Growth Engines

The company operates through an integrated pharma platform built around three complementary growth engines: a rapidly growing CDMO export business, the Australia and New Zealand platform via Noumed Pharmaceuticals, and a stable branded formulation business in domestic markets. Over 50% of consolidated revenue now comes from long-term supply contracts in regulated markets, reflecting strong customer relationships and a focus on product development, technology transfer, and commercial manufacturing.

Strong Financial Performance in FY26

For FY26, consolidated revenue stood at INR381 crore, a significant 133% growth, with EBITDA at INR47 crores, up 18%. Standalone revenue for FY26 was INR162 crore, with EBITDA of INR33 crores (21% of revenues) and PAT of INR17 crores, marking a 64% growth over FY25. Q4 FY26 consolidated revenue was INR198 crores, with EBITDA of INR29 crores (15%) and PAT of INR13 crores (6.6%), reflecting the partial consolidation of Noumed.

Substantial Capex Program for Future Growth

Sai Parenterals is executing an INR440 crores growth capex program, including INR111 crores for capacity expansion and EU-GMP upgrades in India, INR18 crores for a dedicated R&D center, and AUD 53 million (INR311 crores) for the Adelaide manufacturing facility in Australia. AUD 40 million has been invested in the Australian project to date, which also received a AUD 20 million grant. These projects are expected to be completed by the end of FY27.

FY27 Outlook & FY28 Monetization

For FY27, the company targets a revenue of INR750 crores with an EBITDA margin of 17%, driven by existing long-term contracts, new dossier commercialization, and Noumed's contribution. However, the ongoing capex will not contribute to FY27 financial performance, as facilities will be commissioned towards the end of FY27. The full impact of these investments is expected to reflect in FY28 and FY29, with FY28 anticipated to be the year of significant monetization and profitability growth.

Noumed Integration & Operational Ramp-up

The vertical integration of Noumed is a key priority, aiming to internalize manufacturing currently outsourced to CMOs. The Australian facility's validation is set to commence in October-November 2026, with solid dosage forms starting production in Q1 Australian calendar year (Jan-Mar 2027), and TGA license expected by March 31, 2027. This integration is projected to significantly improve margins, enhance supply chain control, and strengthen customer relationships.

Capital Structure and Debt Management

As of March 26, 2026, total debt stood at INR319 crores, comprising INR90 crores of long-term and INR229 crores of short-term borrowings. Management expects FY27 to be the peak year for debt due to ongoing capex, but projects debt levels to decline from FY28 onwards. The debt-to-equity ratio is comfortable at 0.6 times, and IPO proceeds are funding a portion of the capex, supporting the company's growth plans.

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