Altman Z″
Needs current assets and current liabilities.
A plain-language read of the business, how it actually earns, where the edge is, and the economics of every reported segment — taken from the annual report and investor presentation, not a one-line industry label.
Trading at 81.9x earnings against its own median of 78.3x: 0.2 standard deviations above its usual range. This compares the company with its own history, not with other companies.
How to read this: Price shows the closing price with its 50-day (amber) and 200-day (grey) averages; bars at the bottom are daily volume, green on up days and red on down days; dashed lines mark the 52-week high and low. vs Nifty 50 starts both at 100 so you can see which did better over the period. P/E shows what the market paid for each rupee of profit, inside the band it usually trades in. Drawdown shows how far below its best price the share has been. Hover anywhere for the numbers on that day.
The three to six things that actually matter about this company, each with the exact filing and note it came from — never a fact without the context that makes it meaningful.
What the numbers mean when read together — computed from the filings, not a score.
Free cash flow is negative — the business consumes more than it generates once capex is paid. Fine if it is deliberate growth investment; a problem if it is structural.
Why this reading: Noted with caution — worth watching, but not yet conclusive on its own. Business has ups and downs; one soft reading is not a verdict.
Latest free cash flow ₹-83 cr, negative in 6 of 8 years. Check whether the burn funds expansion (dark stores, plants, ports) or merely sustains operations.
Operating cash is 146% of trailing profit — the earnings are converting to real cash, not just accruals.
Why this reading: A positive signal: cash conversion at or above ~0.9 means reported profit is showing up as actual cash.
Operating cash ₹509 cr against trailing net profit ₹349 cr. Consistent conversion near or above 1.0 is a hallmark of genuine earnings.
Both revenue and profit grew over the last year (17.6% and 48%) — growth is translating to the bottom line.
Why this reading: A positive signal in the numbers, shown for balance alongside the concerns.
Trailing revenue ₹2,249 cr, trailing profit ₹361 cr. Profit growing at least as fast as revenue indicates operating leverage or pricing power.
Borrowings have fallen 69% over two years — the balance sheet is getting lighter.
Why this reading: A positive signal in the numbers, shown for balance alongside the concerns.
Borrowings down to ₹288 cr from ₹928 cr. Falling debt reduces finance cost and financial risk.
Every score below is calculated here from the reported numbers — none of it is asserted. Open the notebook at the foot of the section to see each formula with this company's figures in it.
Needs current assets and current liabilities.
Piotroski F-Score — fundamental momentum — Joseph Piotroski, University of Chicago, 2000, in a study of whether accounting signals could improve returns among cheap stocks.
Nine yes-or-no tests across profitability, leverage and operating efficiency. Each pass scores one. It asks a narrow question: is this business getting better or worse on its own terms, year over year?
How to read it7 or more suggests improving fundamentals; 3 or fewer suggests deterioration. It measures direction, not quality — a weak company improving can score higher than a strong one holding steady.
Where it failsA single year of comparison, so one unusual year distorts it. Says nothing about valuation, competitive position or management. Piotroski designed it to rank already-cheap stocks, not to judge a company in isolation.
Needs trade receivables, current assets, other expenses.
Accruals are -4.7% of assets. Free cash flow negative in 6 of 8 years.
DuPont decomposition — Devised inside the DuPont Corporation in the 1920s and still the standard way to read a return on equity.
Splits return on equity into its three sources, so the same headline number can be traced to very different businesses.
How to read itA 20% ROE built on margin and turnover is a different proposition from a 20% ROE built on 3× leverage. The first survives a downturn; the second amplifies it.
Where it failsA single year. Negative equity makes it meaningless. Leverage is structural for lenders, so the third term carries no signal there.
Revenue grew faster than the capital behind it, which is what operating leverage looks like: the existing asset base is working harder.
cumulative operating cash flow ÷ cumulative net profit
₹1,619 cr ÷ ₹828 cr, over 8 years
1.96×
Above 1.0 means cash exceeds reported profit — the healthier reading.(net profit − operating cash flow) ÷ average total assets
(₹349 − ₹509) cr ÷ average assets
-4.7%
Negative means cash exceeded profit — the healthier reading. Positive above ~10% is where accruals start to dominate earnings.net margin × asset turnover × leverage
15.9% × 0.61 × 1.45
14.0%
Splits ROE into whether returns come from operations or from borrowing.EBIT ÷ finance cost
₹507 cr ÷ ₹41 cr
12.37×
How many times operating profit covers the interest bill.borrowings ÷ net worth
₹288 cr ÷ ₹2,484 cr
0.12×
Read against the sector — infrastructure carries more than software.growth in fixed assets + CWIP, against growth in revenue
capital +76% vs revenue +80%, FY2023 to FY2026
-5pp gap
Money going in far faster than revenue coming out. For an incubator this is expected — the test is whether it eventually converts.Needs more balance-sheet detail (only 3 of 6 flags testable).
NOPAT over equity plus debt less cash, at a notional 25% tax. Incremental ROIC is the return on money put in since then — the number that decides whether growth creates value or consumes it.
Return on invested capital, and incremental ROIC — Standard in corporate finance; the incremental form was popularised by Michael Mauboussin as the test of whether growth creates value.
ROIC measures what the business earns on all the capital it employs — equity plus debt, less cash. Incremental ROIC asks a sharper question: what has it earned on the money put in since a chosen year?
How to read itROIC comfortably above the cost of capital — call it 11–13% in India — means growth compounds. Below it, growth consumes. Incremental below headline means recent investment is earning less than the legacy business.
Where it failsDistorted in the year of a large acquisition. Understated for companies mid-build, where capital is deployed but capacity has not yet been commissioned — an incubator will look poor until it does not.
Read downward. Cash can cover EBITDA and still not survive capex — the third rung is where a capital-hungry business shows itself.
The earnings quality ladder — Not a named model — the standard sequence an analyst walks when testing whether reported profit is real.
Three ratios read in order, each stricter than the last.
How to read itRead downward. Each rung failing where the one above passed tells you exactly where the cash is going.
Where it failsA single year of heavy capex depresses the third rung legitimately. Judge it across a cycle.
Against a policy rate near 6%, most sound Indian corporates borrow between 7% and 10%.
Cost of debt — Interest expense over average borrowings — the effective rate the company actually pays.
What the lenders charge, which is a market verdict on credit quality that no rating agency delay affects.
How to read itAgainst a policy rate near 6%, most sound Indian corporates borrow between 7% and 10%. Read the direction over years as much as the level.
Where it failsUnderstated where a large share of interest is capitalised into projects under construction. Not meaningful for lenders, where interest is cost of goods.
Some figures appear twice on this page with different values. That is not an error — they sit on different bases. The live feed reports a rolling twelve months; everything computed here comes from the last audited statements. Both are shown so you can see which is which.
Where the two disagree, every model, screen and ratio computed on this page uses the filed figure, because the rest of the page is on that basis.
Models that need these lines are withheld rather than estimated: net worth, current assets, current liabilities, trade receivables, inventory, net block. Nothing on this page is back-solved from a figure the company did not publish.
Each framework below is a set of stated, mechanical criteria from published work, run against this company's own filed numbers. Passing or failing a screen is not a verdict — different frameworks disagree by design, and that disagreement is itself informative.
Benjamin Graham's stated criteria for a defensive stock, applied to the filed numbers. A company failing several is not disqualified — Graham designed these to be deliberately strict.
Two ratios only: what the business earns on its capital, and what you pay for those earnings. Designed to be ranked across a universe rather than read in isolation.
The fundamental half of William O'Neil's framework. The market and leadership components are judgement calls and are not scored here.
The characteristics long-term holders commonly look for: cash-backed earnings, high returns on capital, and debt that never forces a decision.
Median of the companies we hold in the same sector (Healthcare). Every figure on both sides is the live feed's trailing twelve months, so the two are measured the same way whatever depth of extraction this company has had. A number only means something next to something else — expensive against the market and cheap against peers are different facts.
Bars are revenue; the line is net margin. Revenue rising while the line falls is the shape worth noticing.
Operating cash first, then what the business spent and raised.
One year is a snapshot. These are the two lines that matter across a cycle.
Rising debtor or inventory days against flat sales is the earliest visible sign of stress.
Set your own assumptions and watch the numbers move. A scenario calculator — the outputs are the arithmetic of your inputs.
One canonical set of figures — the same numbers used everywhere else on this page and on the screener.
How the register has moved over recent quarters — the direction matters more than the level.
Promoter trimmed from 34.70% to 34.50% across these quarters.
FII trimmed from 21.41% to 19.91% across these quarters.
MF rose from 27.57% to 29.56% across these quarters.
Other trimmed from 16.32% to 16.03% across these quarters.
Where cash gets stuck. A rising inventory or debtor line against flat sales is the earliest sign of trouble in the numbers.
| Measure | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|---|---|
| Debtor days
How long customers take to pay | 123 | 136 | 99 | 102 | 85 | 64 | 76 | 62 |
| Inventory days
How long stock sits before it sells | 86 | 79 | 127 | 179 | 121 | 72 | 93 | 97 |
| Payable days
How long the company takes to pay suppliers | 207 | 258 | 230 | 279 | 180 | 113 | 253 | 182 |
| Cash conversion cycle
Debtor + inventory − payable days | 1 | -43 | -4 | 2 | 25 | 22 | -83 | -24 |
| Working capital days | 55 | 24 | 62 | 42 | 36 | 12 | 66 | 70 |
| ROCE %
Return on capital employed | — | 13.0% | 9.0% | 3.0% | 6.0% | 11.0% | 14.0% | 20.0% |
| Metric | Q2 FY27 | Q1 FY27 | Q2 FY26 |
|---|---|---|---|
| Gross margin | 73.44% | 73.68% | 73.93% |
| CDMO Revenue Share | 64% | — | 62% |
| CRO Revenue Share | 36% | — | 38% |
| Manufacturing Capacity Utilization | 67% | — | — |
From the quarterly results and the earnings call, read by FinMinutes. Latest quarter, read in full.
Read using the Pharmaceuticals framework (named in the filing read). Primary valuation lens: P/E excluding one-time exclusivity gains.
Read more closely in this sector: Status of each US-filed plant · Price erosion stated · One-product dependence.
The shape of the business over time (annual) — read the direction, not the single print.
| Line | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Revenue from operations | 760 | 870 | 1,217 | 1,465 | 1,695 | 2,192 |
| Other income | 27 | 28 | 27 | 29 | 35 | 40 |
| Depreciation | 80 | 90 | 99 | 119 | 139 | 167 |
| Finance cost | 33 | 54 | 81 | 88 | 78 | 41 |
| Profit before tax | 82 | 10 | 16 | 109 | 228 | 466 |
| Net profit (owners) | 61 | 6 | 10 | 83 | 170 | 349 |
| EPS (₹) | — | — | — | — | 8.16 | 16.48 |
Exceptional items, total income and EBITDA are read from the filed statements.
| Metric | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 384 | 439 | 280 | 396 | 440 | 580 | 496 | 537 | 556 | 602 | 554 |
| Other Income | 11 | 3 | 8 | 10 | 9 | 10 | 10 | 15 | 0 | 16 | 4 |
| Expenses | 287 | 315 | 254 | 293 | 320 | 422 | 375 | 392 | 369 | 426 | 406 |
| Depreciation | 31 | 31 | 31 | 36 | 34 | 37 | 38 | 40 | 44 | 45 | 46 |
| Finance cost | 23 | 21 | 21 | 21 | 23 | 11 | 12 | 9 | 10 | 8 | 8 |
| Profit before tax | 53 | 76 | -18 | 55 | 72 | 119 | 81 | 112 | 134 | 139 | 98 |
| Net Profit | 40 | 56 | -14 | 42 | 54 | 88 | 60 | 84 | 100 | 104 | 73 |
| EPS | — | — | — | — | 2.59 | 4.24 | 2.90 | 4.00 | 4.75 | 4.92 | 3.45 |
| Item | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Equity Capital | 17 | 18 | 18 | 18 | 21 | 21 |
| Reserves | 845 | 861 | 870 | 957 | 2,108 | 2,463 |
| Borrowings | 637 | 752 | 933 | 928 | 352 | 288 |
| Net block | 701 | 751 | 1,037 | 1,180 | 1,488 | 1,815 |
| CWIP | 246 | 410 | 151 | 107 | 124 | 270 |
| Investments | 0 | 0 | 2 | 2 | 2 | 50 |
| Total Assets | 1,817 | 2,157 | 2,179 | 2,262 | 3,146 | 3,613 |
| Line | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Cash from operations | -36 | 105 | 219 | 263 | 314 | 509 |
| Cash from investing | -260 | -102 | -99 | -191 | -536 | -395 |
| Cash from financing | 296 | 72 | -201 | -95 | 301 | -124 |
| Free cash flow | -298 | -102 | 148 | 82 | -55 | -83 |
| Net change in cash | -1 | 75 | -80 | -24 | 79 | -9 |
Cash from operations is the number profit has to answer to. Free cash flow is what remains after the business pays for its own growth.
The part no one reads: the auditor's opinion, the contingent liabilities buried in the notes, the covenants, and the claims in the deck placed beside the figures that test them.
Where analysts pressed management on the earnings call, and exactly how management answered — the questions that were hardest to answer are usually the ones that matter.
These are coverage counts, not ratings. Each one asks a fixed set of questions of the filings and reports how many the company answered. A company that discloses nothing counts nothing here — that is a statement about the disclosure, not about the business.
The same read, applied to the companies this one competes with.
Sai Life Sciences Ltd. reported revenue of ₹659 cr for July to September 2026, +22.5% on the year and +18.8% on the quarter. It is the highest quarterly revenue in the last 12 quarters on record. Over the last four quarters revenue comes to ₹2,371 cr, +15.5% on the four before.
Operating profit (EBITDA) was ₹186 cr, a margin of 28.3%, +117 bps on the year and +160 bps on the quarter. Over the last 8 quarters the margin has ranged from 24.4% to 33.8%, averaging 28.0%. Operating costs grew +20.6% against revenue growth of +22.5%, so more of each rupee of sales reached operating profit.
Net profit was ₹98.3 cr, +17.3% on the year and +34.2% on the quarter, with earnings per share of ₹4.63. Profit before other income, one-offs and tax grew faster, at +31.6%; other income, one-offs or tax held the headline back. The tax rate of 25% is in line with its recent average. Profit over the last four quarters totals ₹376 cr, +31.4% on the four before.
Of the 13 companies in Pharmaceuticals that have reported Q2 FY27 so far, Sai Life Sciences Ltd. ranks 5th on revenue growth; the sector median is +11.8%. Its margin moved +117 bps on the year against a sector median of −60 bps.
Pharma quarters swing with US generic launches and price erosion, while India formulations grow more steadily. Currency gains and other income can be material, so headline profit needs a check against operating profit.
On earnings per share of ₹17.76 over the last four quarters, the stock at ₹1,390.40 trades at 78.3 times trailing earnings.
No check fired. That is a statement about the checks below, not a verdict on the company.
Profit is backed by cash: operating cash flow exceeded profit.
Source: Cash flow statement
Filed late at night.
Source: Exchange filing
Could not run on this quarter: Exceptional items that recur, Related-party transactions, Promoter pledges and allotments, Earlier promises against delivery. The filing did not carry these lines.
Net profit a year ago, each driver's change, and net profit now. Blue added profit, red took it away.
| Balance sheet | Sep '26 | Last year end | Change |
|---|---|---|---|
| Trade receivables | ₹342 cr | ₹374 cr | ▼ 8.4% |
| Inventory | ₹242 cr | ₹151 cr | ▲ 60.3% |
| Cash | ₹30.9 cr | ₹81.9 cr | ▼ 62.3% |
| Bank balances | ₹28.6 cr | ₹29.0 cr | ▼ 1.4% |
| Long-term borrowings | ₹30.3 cr | ₹20.5 cr | ▲ 47.9% |
| Short-term borrowings | ₹418 cr | ₹74.6 cr | ▲ 460.1% |
| Trade payables | ₹273 cr | ₹285 cr | ▼ 4.4% |
| Net block | ₹1,741 cr | ₹1,534 cr | ▲ 13.4% |
| Capital work in progress | ₹560 cr | ₹270 cr | ▲ 106.9% |
| Equity | ₹2,688 cr | ₹2,484 cr | ▲ 8.2% |
| Total assets | ₹4,202 cr | ₹3,626 cr | ▲ 15.9% |
| Cash flow, year to date | This year | Last year |
|---|---|---|
| Operating cash flow | ₹190 cr | ₹92.8 cr |
| Capital expenditure | −₹561 cr | −₹248 cr |
| Investing cash flow | −₹553 cr | −₹10.5 cr |
| Financing cash flow | ₹312 cr | ₹31.8 cr |
Operating cash flow was 1.11× profit. Receivables at 51 days of sales (−11 days against the last year end). Inventory at 36 days of sales (+11 days).
Other matter: “”We did not review the interim financial information of 2 subsidiaries included in the unaudited consolidated financial results, whose interim financial information reflect total assets of Rs 1,592.02 million as at September 30, 2026, total revenues of Rs. 384.89 million… Read in full
We did not review the interim financial information of 2 subsidiaries included in the unaudited consolidated financial results, whose interim financial information reflect total assets of Rs 1,592.02 million as at September 30, 2026, total revenues of Rs. 384.89 million and Rs. 746.77 million for the quarter and six months ended September 30, 2026 respectively, total net profit after tax of Rs. 22.92 million and Rs. 41.80 million for the quarter and six months ended September 30, 2026 respectively, other comprehensive income of Rs. Nil for the quarter and six months ended September 30, 2026 respectively and net cash inflows of Rs. 42.32 million for the six months ended September 30, 2026, as considered in the Statement. These interim financial information have been reviewed by other auditors whose reports have been furnished to us by the Management and our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries, is based solely on the reports of the other auditors and the procedures performed by us as stated in paragraph 3 above.
Filing p. consolidated limited review report p.1-2
₹0.0 cr still unused. “During Q2 FY27, company allotted 132,200 equity shares under ESOP schemes. IPO transaction costs of ₹0.18 crore (Rs 1.79 million) paid in H1 FY27. No deviation in utilization of issue proceeds reported.”
Approved appointment of Mr. Sidhartha Das as SVP & Head - HR, Mr. Vijay Kumar Suthari as VP - Head Quality & Regulatory Affairs, and Mr. Sriram Gopalakrishnan as SVP - Corporate Communications as Senior Management Personnel w.e.f. November 05, 2026. (p. outcome letter p.1, Annexure-A)
Tax: Consolidated tax expense of ₹32.96 crore (current tax ₹26.53 crore, deferred tax ₹6.43 crore) on Profit before tax of ₹131.28 crore for Q2 FY27
| Metric | Q2 FY27 | Q1 FY27 | Q2 FY26 |
|---|---|---|---|
| Gross margin | 73.44% | 73.68% | 73.93% |
| CDMO Revenue Share | 64% | — | 62% |
| CRO Revenue Share | 36% | — | 38% |
| Manufacturing Capacity Utilization | 67% | — | — |
Worked out from filed numbers. Material Margin: Material Margin = (Revenue ₹658.59 crore - Cost of materials & inventory changes ₹174.69 crore) / ₹658.59 crore * 100 = 73.44% (reported as 73% in presentation slide 3)
100% successful track record of regulatory inspections across R&D and manufacturing facilities by USFDA, PMDA, and CDSCO; Bidar Unit 4 and Hyderabad Unit 2 operate with active USFDA approval status.
Clean USFDA inspection record across all key R&D and commercial manufacturing units.
not disclosed
As a specialized innovator CRDMO focused on custom synthesis and patented NCE molecules, generic drug price erosion is not applicable.
Diversified CRDMO portfolio across 300+ global innovator clients, 34 active commercial NCE molecules, and 14 Phase III/pre-registration molecules across multiple therapeutic areas.
Broad customer and pipeline diversification mitigates single-molecule risk, with 19 of the top 25 global pharma companies as active clients.
Read using the Pharmaceuticals framework (named in the filing read). Primary valuation lens: P/E excluding one-time exclusivity gains.
Read more closely in this sector: Status of each US-filed plant · Price erosion stated · One-product dependence.
| Metric | Guidance | For | Against earlier guidance |
|---|---|---|---|
| FY27 Full Year Capex Range Guidance | 1100–1300 ₹ crore | FY2026-27 | unchanged or first given |
| H2 FY27 Performance Guidance | Stronger second half supported by pipeline progression and capacity ramp-up | H2 FY2026-27 | unchanged or first given |
Held for next quarter's said-then-did check.
| Segment | Revenue | YoY | Result | YoY |
|---|---|---|---|---|
| Contract Research, Development and Manufacturing Services (CRDMO) | ₹659 cr | ▲ 22.5% | ₹131 cr | ▲ 17.2% |
| Q3 FY24 | Q4 FY24 | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | ₹384 cr | ₹439 cr | ₹280 cr | ₹396 cr | ₹440 cr | ₹580 cr | ₹496 cr | ₹537 cr | ₹556 cr | ₹602 cr | ₹554 cr | ₹659 cr |
| YoY | — | — | — | — | +15% | +32% | +77% | +36% | +26% | +4% | +12% | +23% |
| EBITDA margin | 25.0% | 28.5% | 9.3% | 25.8% | 27.3% | 27.2% | 24.4% | 27.1% | 33.8% | 29.4% | 26.7% | 28.3% |
| Other income, % of PBT | 21% | 4% | — | 18% | 13% | 8% | 12% | 14% | 0% | 12% | 4% | 3% |
| Exceptional items | — | — | — | — | — | — | — | — | — | — | — | — |
| Tax rate | 25% | 26% | — | 25% | 25% | 26% | 25% | 25% | 25% | 25% | 25% | 25% |
| Net profit | ₹40.0 cr | ₹56.0 cr | −₹14.0 cr | ₹42.0 cr | ₹54.0 cr | ₹88.0 cr | ₹60.0 cr | ₹83.8 cr | ₹100 cr | ₹104 cr | ₹73.3 cr | ₹98.3 cr |
| YoY | — | — | — | — | +35% | +57% | — | +100% | +85% | +18% | +22% | +17% |
| Core profit YoY | — | — | — | — | +50% | +49% | — | +115% | +113% | +13% | +33% | +32% |
| EPS | — | — | — | — | ₹2.59 | ₹4.24 | ₹2.90 | ₹4.01 | ₹4.75 | ₹4.92 | ₹3.46 | ₹4.63 |
| Flags | · | · | · | · | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
Each quarter is read with the same rules. Balance-sheet and cash checks run on half-year and annual quarters; filing-read checks run where a read exists.