India's Biotech Boom Attracts Domestic Investors' Solid Confidence

India's biotech industry is experiencing a remarkable surge, with projections indicating it will more than double to reach $300 billion by 2030. This rapid growth has caught the attention of Domestic Institutional Investors (DIIs), who have significantly increased their holdings in two prominent biotech companies, showcasing their confidence in the sector's future.

Sai Life Sciences Ltd., a contract research and manufacturing firm, has seen its DII holding jump from 12% at listing in December 2024 to 22% by June 2025. The company's financials have also been impressive, with sales, EBITDA, and net profits growing at compounded rates of 18%, 18%, and 17%, respectively, from FY20 to FY25.

Similarly, Biocon Ltd., a leading global player in biosimilars and insulins, has witnessed a surge in DII holdings, from 16% in March 2025 to 23% by June 2025. The company's sales, EBITDA, and net profits have also grown at compounded rates of 19%, 16%, and 7%, respectively, during the same period.

Despite the strong financial performance, the share prices of these companies have had mixed trajectories. While Sai Life Sciences is trading close to its all-time high, Biocon's stock has seen a drop from its August 2020 levels, even as the company remains confident about its future growth prospects.

The Indian government's increased funding for the Department of Biotechnology and initiatives to support R&D, biomanufacturing, and startups in the sector further underscore the industry's promising future. As the biotech ecosystem continues to expand, with the number of startups growing from 50 in 2014 to nearly 9,000 by 2024, the "smart money" appears to be making its move, betting on India's biotech stars.