Sai Life Q2 FY27 Results (NSE: SAILIFE)
Signal: Growth reaccelerated
The read
Q2FY27 marks a re-acceleration from Q1FY27: consolidated revenue growth improved to 22.5% YoY from 11.7%, while PAT growth was 17.2%; however, gross margin contracted 48bps and finance costs rose 17.0% amid a large capex and borrowing cycle.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹658.59 Cr | +22.5% | +18.8% |
| Net profit | ₹98.32 Cr | +17.2% |
P&L walk
Consolidated revenue accelerated to ₹6,585.85 million, +22.5% YoY and +18.8% QoQ, while PAT rose 17.2% YoY to ₹983.17 million; gross margin narrowed 48bps as employee costs grew 21.7% and depreciation rose 21.1%.
Segments
The company operates as a single CRDMO segment; standalone PAT of ₹960.13 million was 97.7% of consolidated PAT of ₹983.17 million, so subsidiaries added only ₹23.04 million to quarterly earnings.
Key positives
- Consolidated revenue reached ₹6,585.85 million, growing 22.5% YoY and 18.8% QoQ, materially faster than Q1FY27's 11.7% YoY growth.
- Consolidated PAT rose 17.2% YoY to ₹983.17 million and 34.2% QoQ, while H1 operating cash flow increased to ₹1,772.68 million from ₹788.68 million.
- Raw-material and chemical costs declined to 25.8% of revenue from 27.0% YoY, and the standalone asset base is expanding with CWIP rising to ₹5,595.39 million.
Key concerns
- Gross margin declined 48bps YoY to 73.5% despite raw-material cost deflation, indicating that the quarter's growth did not translate into gross-margin expansion.
- Consolidated depreciation rose 21.1% YoY to ₹481.33 million and finance costs rose 17.0% to ₹109.41 million as the capex cycle progresses.
- Standalone basic EPS grew 13.9% YoY to ₹4.52, slightly below 15.7% PAT growth, while 1,08,005 ESOP shares were allotted during the quarter and issued capital increased to ₹212.58 million.
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