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India’s CRDMO Shift Puts Jubilant and Sai in Focus
Drug companies often hire other companies to help find and test new medicines.
Some service providers can also help develop and manufacture those medicines.
India’s share of this global business is still small, but the industry is expected to grow.
Jubilant Pharmova and Sai Life Science are investing in more facilities and research skills.
Both report growth in their drug-discovery work, while Sai says this work is becoming a larger part of its business.
Sai is spending heavily and still has unused capacity, so it needs to turn demand into work for its facilities.
Jubilant is also expanding, but its profits have moved up and down and its debt increased in the latest quarter described.
Drug projects can fail, and companies face competition from China and changes brought by AI.
The article says investors should watch execution, customer demand and returns rather than relying on growth forecasts alone.
India’s CRDMO industry is forecast to grow about 15% annually over the next decade, but currently holds 2–3% of the global innovator-drug market.
Jubilant Pharmova’s Drug Discovery Services revenue rose 8% year on year to ₹174 crore in Q1 FY27, while discovery EBITDA increased 43%.
Jubilant plans US$150 million in expansion spending and aims to grow discovery staffing to 4,000 FTEs by FY30.
Sai Life Science’s CRO revenue grew 24% year on year in Q1 FY27 and accounted for 40% of quarterly revenue.
Both companies face execution tests involving customer demand, capacity utilisation, project outcomes and returns on investment.
- Who
- Jubilant Pharmova and Sai Life Science, Indian pharmaceutical research, development and manufacturing companies.
- What
- The companies are expanding discovery and integrated CRDMO services amid projected growth in India’s market.
- Where
- India, with Jubilant discovery operations in Bengaluru and Noida and expansion planned in Greater Noida and Devanahalli, Bengaluru.
- When
- The article discusses Q1 FY27 results, FY27 investment plans and market prices as of 1 October 2026.
- Why
- Global pharmaceutical companies are increasingly outsourcing research and development, creating an opportunity for integrated service providers.
Growth opportunity
Execution risks
Market opportunity
Growth opportunity
India’s CRDMO industry is expected to grow about 15% annually over the next decade, and integrated services could let companies participate from discovery through manufacturing.
Execution risks
India currently has only 2–3% of the global innovator-drug CRDMO market, compared with China’s 18–21%; gaining share will require scientific depth, speed and competitive infrastructure.
Expansion and returns
Growth opportunity
Jubilant and Sai are expanding capacity and capabilities, while Sai reports strong pipeline visibility and low net leverage.
Execution risks
Large investment programmes need to translate into customer demand, higher utilisation and adequate returns; Jubilant’s net debt and Sai’s 65% capacity utilisation are relevant considerations.
Discovery growth and risk
Growth opportunity
Both companies report growing discovery businesses, and AI tools could improve research productivity.
Execution risks
Drug programmes can fail or be discontinued, and AI may reduce some experimental work while requiring investment in computational capabilities.
Key facts
- India CRDMO outlook
- ICRA expects about 15% annual industry growth over the next decade; India currently accounts for 2–3% of the global innovator-drug CRDMO market.
- China market share
- China accounts for 18–21% of the global CRDMO market, according to the article.
- Jubilant Discovery Services
- Q1 FY27 revenue rose 8% year on year to ₹174 crore; EBITDA increased 43% to ₹45 crore.
- Jubilant expansion
- The company plans US$150 million in capex and aims to increase discovery FTEs from 1,000 in FY25 to 4,000 by FY30.
- Sai discovery business
- Q1 FY27 CRO revenue grew 24% year on year and made up 40% of quarterly revenue.
- Sai investment plan
- Sai budgeted ₹1,100–1,300 crore in FY27 capex; 65% of capacity was utilised in Q1 FY27.
- Stock prices cited
- On 1 October 2026, Jubilant Pharmova closed at ₹999.30 and Sai Life Science at ₹1,541.20 on the NSE.
Sources
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