PL Research opened coverage of Sai Life Sciences with a Buy rating and INR 1,620 target, forecasting about 21% annual revenue growth through FY29E as drugmakers outsource more work.
In a report dated Wednesday, Oct. 21, the brokerage forecast a compound annual growth rate of about 21% in revenue from FY26 to FY29E. It also estimated growth of about 25% in earnings before interest, taxes, depreciation and amortization (EBITDA) and 26% in profit after tax. Its estimates call for annual growth of about 23% in contract development and manufacturing (CDMO) revenue and 16% in contract research (CRO) revenue. PL Research based its target on 55 times estimated September 2028 earnings. The report listed a market price of INR 1,390.
The brokerage tied its outlook to large pharmaceutical customers, the company's services across research, development and manufacturing, and its late-stage pipeline. It said work across drug-development stages can help clients move projects toward commercial supply. Sai Life management has described large drugmakers consolidating work across development stages and shifting more of it to India, comparing the pattern with an earlier move toward China.
Sai Life reported revenue of INR 554 crore for the quarter ended June 30, 2026, up 12% year over year. Contract research revenue rose 24%. The company reported 33 active commercial molecules and 14 late-phase molecules.
The roughly 21% growth figure is PL Research's estimate, not company guidance. Sai Life has stated an annual revenue-growth aspiration of 15% to 20% over a three-year period and said it expects FY27 capital investment of INR 1,100 crore to INR 1,300 crore.
The National Stock Exchange of India lists Sai Life Sciences' financial-results meeting for Nov. 5.
