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Industry : Pharmaceuticals & Biotechnology

Sai Parenteral's Limited View all IPOs

Price Band

Rs 372 – Rs 392

Sai Parenteral's Limited is going public with a fresh issue and an offer for sale. The issue opens on 24th March 2026.

MOJO CALL

Why

Avoid

MOJO CALL

Avoid

Neutral

Rapidly Scaling CDMO Business with Strong Growth Trajectory

The CDMO segment has grown exceptionally fast — from Rs 5.32 crore (5.49% of revenue) in FY2023 to Rs 24.34 crore (28% of revenue) in H1 FY2026 — demonstrating strong client acquisition and execution capabilities. The company's R&D and regulatory compliance infrastructure, including dossier compilation and international regulatory filings, positions it as a credible CDMO partner for regulated market clients. Its existing accreditations (WHO-GMP, TGA-Australia, PIC/S) make it eligible to serve global innovator and generic pharma companies seeking outsourced manufacturing.

Heavy Dependence on Branded Generics with Declining Share

Despite its CDMO growth, Branded Generic Formulations still contributed 72% of revenue in H1 FY2026, making the business significantly exposed to pricing pressures, competition from larger domestic pharma players, and tender-based government procurement volatility. The domestic branded generics space is intensely competitive, with thin margins and heavy dependence on field-force-driven sales, which can be both capital and operationally intensive to scale.

Small Scale of Operations and Limited Financial Track Record

With total revenues of just Rs 163 crore in FY2025, Sai Parenterals is a relatively small company in an industry dominated by significantly larger domestic and global players, which limits its bargaining power with suppliers, distributors, and CDMO clients.

Significantly Stretched Valuations

Based on the FY2025 financials, the company is seeking a market-to-sales valuation of 10.6x and a price-to-earnings ratio of 120x. Given its relatively small scale of operations in a highly competitive market, the valuations appear significantly stretched compared to industry peers. Accordingly, we recommend avoiding the issue.

Issue Details

Issue Opens	24th March 2026
Issue Closes	27th March 2026
Price Band	Rs 372 – Rs 392
Issue size (Upper Band)	Rs. 409 crore
Issue Type	FRESH ISSUE & OFFER FOR SALE
Market cap (based on upper band)	Rs 1781.83 crore
Sales- March 2025 (Rs./Crs)	Rs. 163.11 Cr
Net Profit - March 2025 (Rs./Crs)	Rs. 7.76 Cr
Industry	Pharmaceuticals & Biotechnology
Promoters	ANIL KUMAR KARUSALA, VIJITHA GORREPATI AND KARUSALA ARUNA
Lead Manager	Arihant Capital Markets

Objective of the Issue

Details

Objectives of the Issue – Fresh Issue: Rs 285 crore & Offer for Sale: Rs 124 crore

1. Capacity expansion and upgradation of manufacturing facilities – Rs 110.79 crore

2. Establishment of a new R&D Centre – Rs 18.02 crore

3. Repayment / prepayment of certain outstanding borrowings – Rs 14.30 crore

4. Working capital requirements – Rs 33 crore

5. Repayment of bridge loan and term loan availed for investment in wholly owned subsidiary, Sai Parenterals Pte Limited (Singapore), in relation to the acquisition of Noumed Pharmaceuticals Pty Limited (Australia) – Rs 35.64 crore

6. General Corporate Purposes – Rs 73.25 crore

List of Shareholders Selling Their Stake

Name	Type	Value of Shares (in Rs)	% of OFS
Vikasa India EIF I Fund	Individual Investor	16,85,60,000	14%
Tilokchand Punamchand Ostwal	Individual Investor	8,71,11,024	7%
Devendra Chawla	Individual Investor	8,71,09,456	7%
Bhanwar Lal Chandak	Individual Investor	8,70,24,000	7%
Ashish Maheshwari	Individual Investor	8,70,24,000	7%
Sreelekha Ganta	Individual Investor	7,84,00,000	6%
Padma Guntupalli	Individual Investor	7,84,00,000	6%
Vijay Gondi	Individual Investor	7,05,60,000	6%
Bhautik Mukund Shah	Individual Investor	5,48,80,000	4.5%
Nilesh Pravinchandra Doshi	Individual Investor	5,48,80,000	4.5%

Business Operations

About Company

Sai Parenteral's Limited is a diversified pharmaceutical formulations company engaged in the research, development, and manufacturing of pharmaceutical products. The company operates across two primary business verticals — Branded Generic Formulations and Contract Development and Manufacturing Organisation (CDMO) services — catering to both domestic and international markets.

Its product portfolio spans therapeutic areas including cardiovascular, neuropsychiatry, anti-diabetic, respiratory health, antibiotics, gastroenterology, vitamins, minerals and supplements, analgesics, and dermatology, offered in dosage forms such as injectables, tablets, capsules, liquid orals, and ointments.

The company owns and operates five manufacturing facilities across Hyderabad and Andhra Pradesh, with a combined installed capacity of 1,160 million units per annum, holding certifications such as WHO-GMP, TGA-Australia, and PIC/S.

Segment Revenue Breakup

Revenue Breakdown by Segment:
Segment	H1 FY2026	FY2025	FY2024
Branded Generic Formulations	72%	80%	87.5%
CDMO	28%	20%	12.5%

Financials

Financial Overview

The company's revenue grew at a CAGR of 29.8% between FY2023 and FY2025, with revenues of Rs 163 crore recorded for FY2025. For H1 FY2026, the company recorded revenues of Rs 86.9 crore.

For FY2025, the company's Operating Profit (EBITDA) stood at Rs 39.44 crore, compared to Rs 31.70 crore and Rs 17.64 crore recorded in FY2024 and FY2023, respectively. For H1 FY2026, EBITDA stood at Rs 16.24 crore, with margins of 18.68%.

Consequently, the company recorded profits of Rs 14.45 crore in FY2025, compared to Rs 8.42 crore and Rs 4.38 crore recorded in FY2024 and FY2023, respectively. For H1 FY2026, the company recorded profits of Rs 7.76 crore, with margins of 8.93%.

The company generated positive CFO of Rs 33.15 crore for FY2025. However, the company generated negative operating cashflows of Rs 29.76 crore and Rs 12.80 crore for FY2024 and FY2023, respectively.

As of 30th September 2025, the company recorded borrowings (incl. lease liabilities) of Rs 78 crore.

Financial Performance (Rs/crore)

Rs./Crs	H1 FY2026	FY2025	FY2024
Sales	86.92	163.11	153.76
Net Profit	7.76	14.45	8.42