Hyderabad-based pharma and biotech firm Sai Life Sciences, which offers contract research, development, and manufacturing services to large pharma firms, has seen its stock more than double in less than two years since listing. After hitting a record high of ₹1,697 in early September, the stock has declined about 10%.
In a conversation with CNBC-TV18, Chief Financial Officer Sivaramakrishnan Chittor said the company will continue to grow 15–20% over the next three to five years. While that's slower than the $3.5-billion company's own track record, it may still be a significant growth opportunity for investors focused on long-term earnings growth.

Shares of Sai Life Sciences are trading nearly three times the issue price, and the consensus target price on the street is ₹1,628, just about 7% higher than the current market price. Eight of nine analysts tracking the scrip have a 'buy' call. One reason for the stock's decline was disappointment in first-quarter profitability.
Sai Life Sciences reported a 27% margin in the first quarter, below its medium-term margin guidance of 28–30%. However, the company expects margins to improve as revenue increases in the second half.“Even when we did 30% last year, our margins change based on the revenue growth that happens, and a lot of our costs are fixed in nature in terms of people and facility overheads and stuff.

As revenue kind of increases in the second half, margin is expected to increase and go up,” Chittor explained. The company is now in expansion mode, both in manufacturing capacity and service capabilities. Work is underway for new and more complex drug modalities, including peptides and antibody-drug conjugates .
The company has already announced plans for a peptide manufacturing facility. A pilot-scale facility is expected by the end of the current financial year or early next year, while the larger commercial manufacturing facility is planned for 2028. The goal is to lure large international drug makers looking to diversify their presence outside China.

Drug discovery accounts for 35% of total revenue, with pharma contributing 40% of that business and biotech accounting for the remaining 60%. For the full interview, watch the accompanying videoCatch all the stock market live updates here