Divis Labs, Anthem Bio, Sai Life, PPL, Neuland: JM sees up to 55% upside; check targets
The Indian CRDMO sector is experiencing a sustained growth phase, underpinned by recurrent global contract wins, new client additions, and the expansion of manufacturing capacities.
- Nov 3, 2025,
- Updated Nov 3, 2025 1:23 PM IST
The Indian Contract Research, Development and Manufacturing Organisation (CRDMO) sector is experiencing a sustained growth phase, underpinned by recurrent global contract wins, new client additions, and the expansion of manufacturing capacities. Advanced technology adoption is further enhancing sectoral momentum and supporting market re-ratings. Leading players including Divi’s Labs, Anthem Biosciences, Sai Life Sciences, Piramal Pharma, and Neuland Labs have recorded notable project inflows, marking a diversification across both small-molecule and complex chemistry segments.
This growth is being driven by a structural shift in outsourcing among global pharmaceutical innovators, who increasingly seek cost-efficient, high-quality partners with proven regulatory and compliance track records. Industry experts observe that Indian CRDMOs are now positioned as credible alternatives to their Western and Chinese peers, benefitting from the sector’s evolution from pure-play API manufacturing to integrated partnership models.
JM Financial highlights a robust outlook for the listed players, forecasting a 17% revenue CAGR and 24% EBITDA CAGR over FY25-28E, largely attributed to the ramp-up in commercial orders. Cumulative capital expenditure is projected to reach INR 150 billion over the next three years, representing a 37% increase from the previous period. This trajectory is supported by strategic pharma partnerships and investment in high-value, complex products.
Changing global dynamics, such as cost pressures, supply chain vulnerabilities, and regulatory complexities, have prompted innovators to revisit their dependence on single-region supply chains. As Western CRDMOs struggle with capacity and margin constraints, and Chinese firms encounter trade headwinds and compliance scrutiny, Indian CRDMOs stand to benefit from the resulting recalibration of outsourcing strategies.
In this context, Sai Life Sciences, Anthem Biosciences, and Divi’s Labs are, according to JM Financial, best positioned to capitalise on the global tailwinds. Sai Life Sciences is recognised for its broad modality coverage, global R&D footprint, and capacity for large-scale manufacturing. Anthem Biosciences distinguishes itself through a rich commercial portfolio, industry-leading margins, and a diversified modality mix, while Divi’s Labs leverages scale advantages and a strong pipeline.
Piramal Pharma is showing improvement in its on-patent portfolio and increased utilisation of overseas facilities. Neuland Labs, meanwhile, remains a high-quality small-cap play, focusing on peptide development and capacity-led growth, further reinforcing the sector’s diversified strengths.
The commercial portfolios of these companies are described as a "goldmine for investors." Sai Life Sciences is expected to more than double its CDMO business by FY28, while Divi’s Labs’ pipeline, including over ten major pharma contracts, could add USD 550 million in sales over the FY25-28 period. Piramal Pharma aims to ramp up its on-patent portfolio from approximately USD 150 million in FY25 to over USD 350 million by FY28, supported by four potential blockbusters. Neuland Labs serves as the primary API supplier for three potential blockbuster drugs with an end-product peak sales value exceeding USD 14 billion.
Anthem Biosciences maintains 14 commercial-stage molecules, of which nine are high-value potential blockbusters representing USD 38-40 billion in end-product peak sales opportunity, underscoring the firm’s strong long-term prospects. At the industry level, these opportunities enhance growth visibility, driven by strategic alliances and the delivery of complex, high-value products.
Benchmarking across Indian CRDMO companies reveals improved visibility into long-term revenue growth and margin expansion. The sector’s transition and the scaling up of capabilities have led to a positive re-rating of valuation multiples. JM Financial’s sector coverage focuses on pipeline analysis and cross-sectional benchmarking to identify firms best positioned for sustained outperformance.
As stated by JM Financial, "JM FInancial's pecking order in the Indian CRDMO space stands as 'buy' rating for Sai Life (target price: Rs 1,197), Divi’s Labs (target price: Rs 7,699), Piramal Pharma (target price: Rs 313), Neuland Labs (target price: Rs 19,053) and 'add' rating Anthem Biosciences (target price: Rs 782)".
The Indian Contract Research, Development and Manufacturing Organisation (CRDMO) sector is experiencing a sustained growth phase, underpinned by recurrent global contract wins, new client additions, and the expansion of manufacturing capacities. Advanced technology adoption is further enhancing sectoral momentum and supporting market re-ratings. Leading players including Divi’s Labs, Anthem Biosciences, Sai Life Sciences, Piramal Pharma, and Neuland Labs have recorded notable project inflows, marking a diversification across both small-molecule and complex chemistry segments.
This growth is being driven by a structural shift in outsourcing among global pharmaceutical innovators, who increasingly seek cost-efficient, high-quality partners with proven regulatory and compliance track records. Industry experts observe that Indian CRDMOs are now positioned as credible alternatives to their Western and Chinese peers, benefitting from the sector’s evolution from pure-play API manufacturing to integrated partnership models.
JM Financial highlights a robust outlook for the listed players, forecasting a 17% revenue CAGR and 24% EBITDA CAGR over FY25-28E, largely attributed to the ramp-up in commercial orders. Cumulative capital expenditure is projected to reach INR 150 billion over the next three years, representing a 37% increase from the previous period. This trajectory is supported by strategic pharma partnerships and investment in high-value, complex products.
Changing global dynamics, such as cost pressures, supply chain vulnerabilities, and regulatory complexities, have prompted innovators to revisit their dependence on single-region supply chains. As Western CRDMOs struggle with capacity and margin constraints, and Chinese firms encounter trade headwinds and compliance scrutiny, Indian CRDMOs stand to benefit from the resulting recalibration of outsourcing strategies.
In this context, Sai Life Sciences, Anthem Biosciences, and Divi’s Labs are, according to JM Financial, best positioned to capitalise on the global tailwinds. Sai Life Sciences is recognised for its broad modality coverage, global R&D footprint, and capacity for large-scale manufacturing. Anthem Biosciences distinguishes itself through a rich commercial portfolio, industry-leading margins, and a diversified modality mix, while Divi’s Labs leverages scale advantages and a strong pipeline.
Piramal Pharma is showing improvement in its on-patent portfolio and increased utilisation of overseas facilities. Neuland Labs, meanwhile, remains a high-quality small-cap play, focusing on peptide development and capacity-led growth, further reinforcing the sector’s diversified strengths.
The commercial portfolios of these companies are described as a "goldmine for investors." Sai Life Sciences is expected to more than double its CDMO business by FY28, while Divi’s Labs’ pipeline, including over ten major pharma contracts, could add USD 550 million in sales over the FY25-28 period. Piramal Pharma aims to ramp up its on-patent portfolio from approximately USD 150 million in FY25 to over USD 350 million by FY28, supported by four potential blockbusters. Neuland Labs serves as the primary API supplier for three potential blockbuster drugs with an end-product peak sales value exceeding USD 14 billion.
Anthem Biosciences maintains 14 commercial-stage molecules, of which nine are high-value potential blockbusters representing USD 38-40 billion in end-product peak sales opportunity, underscoring the firm’s strong long-term prospects. At the industry level, these opportunities enhance growth visibility, driven by strategic alliances and the delivery of complex, high-value products.
Benchmarking across Indian CRDMO companies reveals improved visibility into long-term revenue growth and margin expansion. The sector’s transition and the scaling up of capabilities have led to a positive re-rating of valuation multiples. JM Financial’s sector coverage focuses on pipeline analysis and cross-sectional benchmarking to identify firms best positioned for sustained outperformance.
As stated by JM Financial, "JM FInancial's pecking order in the Indian CRDMO space stands as 'buy' rating for Sai Life (target price: Rs 1,197), Divi’s Labs (target price: Rs 7,699), Piramal Pharma (target price: Rs 313), Neuland Labs (target price: Rs 19,053) and 'add' rating Anthem Biosciences (target price: Rs 782)".