Sai Parenteral's Q1 FY27 Results (NSE: SAIPARENT)
Signal: Margin pressure
The read
The trajectory remains expansionary but volatile: consolidated revenue is up 434.9% YoY, EBITDA margin has risen sequentially for the second consecutive quarter to 15.3%, yet gross margin compressed 1,480bps YoY as raw material cost rose to 65.0% of revenue and PAT fell 39.8% QoQ, with other income contributing 38.2% of PBT.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹178.67 Cr | +434.9% | -9.7% |
| EBIT | ₹19.15 Cr | +223.6% | |
| Net profit | ₹7.92 Cr | +459.9% | |
| EPS | ₹1.79 | +1527.3% | |
| EBIT margin | 15.3% |
P&L walk
Consolidated revenue rose 434.9% YoY but fell 9.7% QoQ; EBITDA margin improved sequentially to 15.3%, while finance costs rose 279.9% YoY and PAT declined 39.8% QoQ to ₹79.23 million.
Segments
The company identifies branded generic formulations and CDMO as a sole reportable segment; standalone PAT of ₹88.75 million exceeded consolidated PAT of ₹79.23 million, indicating subsidiaries reduced reported group profit by ₹9.52 million.
Key positives
- Consolidated revenue reached ₹1,786.72 million, up 434.9% YoY, although it declined 9.7% QoQ.
- Consolidated EBITDA margin improved 70bps QoQ to 15.3%, while standalone EBITDA margin expanded 960bps YoY to 31.8%.
- The company is redirecting ₹838.34 million of IPO proceeds toward acquiring 60% of Saicriti Pharma for a greenfield critical-care sterile injectable facility with an estimated total development cost of ₹2,149.60 million.
- The proposed Prathyak acquisition uses ₹180.23 million of IPO proceeds to acquire an established R&D platform with a disclosed portfolio of 124 products under development.
Key concerns
- Consolidated gross margin compressed 1,480bps YoY to 35.0% as raw material cost rose to 65.0% of revenue from 50.2%; revenue growth did not prevent cost absorption.
- Consolidated PAT declined 39.8% QoQ to ₹79.23 million despite EBITDA of ₹272.60 million, with finance costs rising 11.4% QoQ to ₹93.60 million.
- Standalone-versus-consolidated performance diverged: standalone PAT was ₹88.75 million versus consolidated PAT of ₹79.23 million, implying a ₹9.52 million drag from subsidiaries.
- The filing proposes material related-party transactions involving a loan to Sai Singapore for downstream funding to Noumed Pharmaceuticals and sales of goods/services to Noumed.
Earnings quality: includes non-operating other income
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