SAILIFE Q3 FY26 earnings call.

Guidance to track

• Management committed to sustaining 28-30% EBITDA margin range (already achieved at 30% for 9M FY26) to balance growth investment with profitability. Operating leverage from employee costs (~450bps) and material margins (~100bps) drove expansion ahead of schedule.
• Management expects the CDMO:CRO revenue split to remain broadly within 65:35 to 50:50 range, with variability between years depending on which segment grows faster in any given period.
• Hyderabad Unit 8 R&D expansion (200 fume hoods) commissioning Q4 FY26; Process R&D building adding doubling total process R&D capacity by September 2026; Peptide pilot plant by September 2026.
• Adding 225KL by June 2026 and another 225KL by Q1 FY27, representing 70% increase in API manufacturing capacity. New site (non-GMP + GMP + peptide) coming online in 18-24 months.

Risks flagged

• Management explicitly acknowledged they have limited visibility into customer inventory destocking cycles and get impacted when destocking is announced, not before. They can only mitigate through broader portfolio diversification.
• Management referenced FY22-23 experience when margin profile dropped post-commercialization of new facility, and warned that front-loaded people investments and operating expenditure ahead of capacity additions could create growth-related challenges affecting margins.
• Analyst asked specific questions about GLP-based products in pipeline, clinical stages (Phase 1/2), and whether products are peptide vs non-peptide based. Management deflected, stating they don't comment on specific product pipeline beyond two commercial products, and declined to clarify if 'commercial beyond discovery stage' interpretation was correct.
• When asked about split of 7 molecules between primary vs secondary supplier positions, management only confirmed 'probably two of the three' commercial molecules are primary suppliers. Remaining 4 late-phase molecules' supplier status was not clarified.

Key quotes

• We don't control stocking or destocking. We probably get to know it at the time when it actually happens and kind of lot of time gets blindsided. The only way that we can protect ourselves or minimize impacts against these stockings is to make sure that you have a slightly larger portfolio and we are not concentrated on one two products.
• I know everybody talks about margin but the reality is we understand that pretty much every CDMO player is subscale compared to China who are operating at 28-30% margin and if you optimize for margin you potentially will be leaving market share and not never be able to scale and compete in the long term.
• We would optimize margin. Can there be additional? Yes, there will be. Our internal targets are generally higher than the street targets. But I would leave the 28-30% as the margin from a street perspective while we internally work to do higher.