Sai Life Q1 FY27 Results (NSE: SAILIFE)
Signal: Margin expansion
The read
The main inflection is margin quality rather than growth acceleration: revenue growth decelerated to 11.7% YoY from 26.4% in Q3FY26 and 3.8% in Q4FY26, while EBITDA margin remained elevated at 27.3% and gross margin expanded 227bps YoY to 73.9%; the sequential fall in revenue and 170bps margin contraction from Q4FY26 require confirmation that the margin improvement is sustainable.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹554.29 Cr | +11.7% | -7.9% |
| EBIT | ₹105.61 Cr | N/A | |
| Net profit | ₹73.29 Cr | +21.2% | |
| EPS | ₹3.46 | +19.3% | |
| EBIT margin | 27.3% |
P&L walk
Consolidated revenue of ₹5,542.85 million rose 11.7% YoY but fell 7.9% QoQ; gross margin expanded 227bps YoY to 73.9%, EBITDA margin was 27.3% versus 24.0% in Q1FY26, and PAT increased 21.2% to ₹732.85 million as lower other income was more than offset by operating improvement.
Segments
The group reports a single CRDMO segment; subsidiaries contributed ₹361.88 million of revenue and ₹18.88 million of net profit, helping consolidated EBITDA margin reach 27.3% versus standalone margin of 26.2%.
Key positives
- Consolidated gross margin expanded 227bps YoY to 73.9%, with material and inventory-related costs declining to 26.1% of revenue from 28.4%.
- EBITDA margin improved 330bps YoY to 27.3%, despite revenue growth of only 11.7% YoY.
- Finance costs fell 38.2% YoY to ₹76.36 million, supporting operating-to-PBT conversion.
- PAT grew 21.2% YoY to ₹732.85 million while other income fell 64.2% YoY to ₹35.43 million, indicating that YoY profit growth was not driven by treasury income.
Key concerns
- Revenue declined 7.9% QoQ to ₹5,542.85 million and EBITDA margin contracted 170bps from 29.0% in Q4FY26, indicating sequential momentum loss.
- Depreciation increased 21.8% YoY to ₹459.37 million, faster than revenue growth, while the filing provides no fixed-asset or CWIP data to assess whether new capacity is coming on stream.
- Employee benefits expense rose 12.0% YoY to ₹1,799.04 million, slightly faster than consolidated revenue growth.
Research and educational content only. Not investment advice.