Sai Parenterals Q2 FY27: PAT +66% YoY, NPM halves to 5.3% as M&A triples revenue

Sai Parenterals' consolidated revenue came in at ₹194.9 Cr for Q2 FY27, up 264% YoY from ₹53.5 Cr and up 9.1% QoQ from ₹178.7 Cr (Q1 FY27). Consolidated PAT was ₹10.51 Cr, up 65.5% YoY and 32.7% QoQ, with basic EPS of ₹2.38 (not annualised) versus ₹1.79 in Q1 and ₹0.48 a year ago. No exceptional items were reported this quarter or in the comparative quarters, so these are clean, reported-basis numbers — no raw-vs-adjusted split is needed. The headline revenue jump is overwhelmingly a consolidation-scope effect, not organic growth: the year-ago quarter's consolidated base of ₹53.5 Cr predates this year's subsidiary additions. Reflecting that, consolidated net profit margin fell to 5.29% of total income from 11.57% a year ago — profit growth (+65.5% YoY) trailed revenue growth (+264% YoY) by a wide margin, which is margin dilution, not an improving core business. Standalone (the original, organic business) tells a steadier story: revenue ₹52.9 Cr (+10.7% YoY, flat QoQ) and PAT ₹6.49 Cr (+15.0% YoY, down 26.9% QoQ off a higher Q1 base), with standalone NPM holding near 11.5% in both years — confirming the consolidated margin compression sits entirely in the newly added units, which carry thinner margins and materially higher depreciation (consolidated D&A ₹250.9 Cr this quarter vs ₹81.1 Cr in Q1 and ₹14.4 Cr a year ago) from acquisition-related asset additions. On guidance, management's FY27 target (reiterated after Q1) was ₹750 Cr revenue and ~17% EBITDA margin on a 45:55 H1:H2 split. H1 FY27 consolidated revenue of ₹373.6 Cr is already ~49.8% of the full-year target — ahead of the guided split — and blended H1 EBITDA-type margin works out to 17.07% (Q1 ~13.2%, Q2 ~20.7%), landing right on the guided 17% despite two very different quarters. Management had also flagged raw-material cost recovery "from Q2 onward" on the last call; cost of materials consumed did fall to 42.2% of revenue in Q2 from 65.0% in Q1, consistent with that call-out. This quarter's corporate actions — completing the 60% Saicriti Pharma acquisition (approved Aug 11, 2026) and board approval to buy the remaining 25% of SP Analytics, making it wholly owned — are the mechanical drivers of the consolidation-scope jump described above. No management press release was available for this result, and no street/consensus estimates for Q2 FY27 turned up in a search (only Q1 FY27 commentary exists), so vs-street is unknown; this read rests on the filing plus the DB's prior-quarter and guidance context.