SAI Parenterals IPO

Strengths · 8

• 01Revenue from operations grew from Rs 96.80 crore in FY2023 to Rs 163.11 crore in FY2025.
• 02EBITDA margin rose from 18.22% in FY2023 to 24.18% in FY2025, as stated in the KPI table.
• 03Return on net worth was 15.09% and return on capital employed was 28.90% in FY2025.
• 04Operating cash flow turned positive at Rs 33.15 crore in FY2025, after negative Rs 29.76 crore in FY2024.
• 05Tablets, liquid orals and capsules now add to injectables, which fell from 92.03% of revenue in FY2023 to 44.78% in FY2025.
• 06Net export revenue grew from Rs 2.56 crore in FY2023 to Rs 25.82 crore in FY2025.
• 07Total borrowings fell from Rs 118.79 crore in FY2024 to Rs 93.95 crore in FY2025, while net worth rose to Rs 95.78 crore.
• 08Installed capacity is planned to rise from 590 million units to 843 million units, with Rs 110.80 crore of the fresh issue set aside for it.

Risks · 10

• 01All five plants are in Hyderabad and Ongole. Revat Laboratories was told to stop manufacturing on 21 May 2024 for Schedule M non-compliance, and the High Court of Andhra Pradesh kept that order in abeyance on 1 July 2024.
• 02Injectables made 44.78% of FY2025 revenue (Rs 70.98 crore), so demand or regulatory trouble in one dosage form matters.
• 03In branded generics, the top 10 customers gave 69.47% of revenue in FY2025 and the top customer gave 24.31%.
• 04Units I and II must stop operations for about 6 months while they are upgraded, and the company depends on outside contractors for the work.
• 05Operating cash flow was negative at Rs 29.76 crore in FY2024 and Rs 12.80 crore in FY2023 because working capital grew, and bank borrowings funded part of it.
• 06The top 10 raw material suppliers gave 82.70% of purchases in FY2025 and there are no long-term supply contracts.
• 07Rs 36.00 crore of the fresh issue goes to buy into Noumed in Australia, and the company has no experience of running a plant overseas.
• 08Litigation against the company covers 5 tax cases and 4 regulatory cases, with Rs 6.04 crore involved in total.
• 09Promoters have given personal guarantees of Rs 112.60 crore on the company's secured loans as at 31 August 2025.
• 10General corporate purposes is not yet specified and can be up to 25% of gross proceeds, and 29 investors are selling shares in the offer for sale.

Sai Parenteral's Limited, based in Hyderabad, is a pharmaceutical formulations company. It was incorporated in 2001 and became a public limited company in January 2022. It runs two businesses: branded generic formulations and contract development and manufacturing (CDMO) products and services, for domestic and international markets.

The product range covers cardiovascular, neuropsychiatry, anti-diabetic, respiratory, antibiotics, gastroenterology, vitamins and supplements, analgesics and dermatology. Dosage forms include injectables, tablets, capsules, liquid orals and ointments. In injectables, the company has sterile manufacturing for critical care and penicillin-based therapies, in dry powder injections, pre-filled syringes, ampoules and vials.

The company owns and operates five manufacturing facilities. Four are in Hyderabad, Telangana, and one is in Ongole, Andhra Pradesh, run through its wholly owned subsidiary Revat Laboratories Private Limited. Installed capacity is 590 million units, and the company plans to take it to 843 million units after the expansion.

In India, products reach pharmacies, hospitals and government institutions through a nationwide network of distributors. The company has won government tenders from health departments in Andhra Pradesh, Telangana, Rajasthan and Tamil Nadu. Exports go to markets such as Australia, UAE, Nigeria, Tanzania, South Africa, Chile and Madagascar. Net export revenue was Rs 25.82 crore in FY2025, of which Australia was 63.01%.

The company signed a share purchase agreement on 23 September 2025 to buy a 74.64% stake in Noumed Pharmaceuticals Pty Limited, an Australian company, for AUD 22.00 million. It had 277 full-time employees and 140 contract personnel as at 31 August 2025.

The industry

The Indian pharmaceutical industry is the world's third largest by volume and was estimated at $62 billion in 2025. The report expects it to grow at a CAGR of 11.2% to $146 billion by 2033. The Indian drug formulation market was about $47 billion in 2025 and is projected to reach $109 billion by 2033, also at a CAGR of 11.2%. The report adds that Indian CDMOs are taking part in more of the pharma value chain. The source is the Marketyser report commissioned by the company.

Customer concentration: In branded generics, the top 5 customers gave 58.62% of FY2025 revenue (70.29% in FY2024) and the top 10 gave 69.47%. In CDMO, the top 10 gave 19.02%.