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Aarti Drugs Results: Latest Quarterly Results & Analysis

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Aarti Drugs Ltd. 03 Aug 2026 12:38 PM
Result PDF

Q1FY27 Quarterly Result Announced for Aarti Drugs Ltd.

Pharmaceuticals company Aarti Drugs announced Q1FY27 results

Consolidated Financial Highlights:

  • The Revenue from Operations for the Company in Q1FY27 stood at Rs 70,278 lakh, showing a YoY growth of 19.01% from Rs 59,051 lakh in Q1FY26 and a QoQ decline of 2.43% from Rs 72,030 lakh in Q4FY26.
  • The Total Income reached Rs 70,359 lakh in Q1FY27, up 19.09% YoY from Rs 59,082 lakh in Q1FY26, while declining 2.42% QoQ from Rs 72,106 lakh in Q4FY26.
  • Profit before exceptional items and tax for Q1FY27 was Rs 7,132 lakh, marking a YoY increase of 39.54% compared to Rs 5,111 lakh in Q1FY26 and a QoQ growth of 1.36% from Rs 7,036 lakh in Q4FY26.
  • The Profit before tax (PBT) after exceptional items was reported at Rs 6,924 lakh for Q1FY27, representing a YoY growth of 35.47% from Rs 5,111 lakh in Q1FY26 and a QoQ decline of 1.59% from Rs 7,036 lakh in Q4FY26.
  • Net Profit (attributable to owners of the Company) for Q1FY27 was Rs 5,017 lakh, showcasing a YoY decrease of 6.94% from Rs 5,391 lakh in Q1FY26 and a QoQ decline of 9.10% from Rs 5,519 lakh in Q4FY26. (Note: Q1FY26 included a tax reversal for earlier years amounting to Rs 1,489 lakh).
  • Total Comprehensive Income for Q1FY27 stood at Rs 5,019 lakh, down 7.19% YoY from Rs 5,408 lakh in Q1FY26 and 13.51% QoQ from Rs 5,803 lakh in Q4FY26.
  • The Basic and Diluted Earnings Per Share (EPS) for Q1FY27 was reported at Rs 5.49, compared to Rs 5.91 in Q1FY26 and Rs 6.05 in Q4FY26.

Standalone Financial Highlights:

  • Revenue from Operations for Q1FY27 was Rs 62,745 lakh, up 20.44% YoY from Rs 52,096 lakh in Q1FY26, while recording a slight QoQ decrease of 0.67% from Rs 63,168 lakh in Q4FY26.
  • Total Income for the quarter stood at Rs 62,765 lakh, representing a YoY growth of 20.39% from Rs 52,135 lakh in Q1FY26 and a QoQ decline of 0.77% from Rs 63,251 lakh in Q4FY26.
  • Profit before exceptional items and tax for Q1FY27 reached Rs 6,994 lakh, representing a YoY growth of 54.56% from Rs 4,525 lakh in Q1FY26 and a QoQ increase of 19.43% from Rs 5,856 lakh in Q4FY26.
  • The Profit before tax (PBT) for Q1FY27 was Rs 6,785 lakh, marking a YoY growth of 49.94% from Rs 4,525 lakh in Q1FY26 and a QoQ increase of 15.86% from Rs 5,856 lakh in Q4FY26.
  • Net Profit for the period was reported at Rs 5,085 lakh in Q1FY27, up 4.54% YoY from Rs 4,864 lakh in Q1FY26 and up 13.10% QoQ from Rs 4,496 lakh in Q4FY26.
  • The Standalone Basic and Diluted EPS for Q1FY27 stood at Rs 5.57, compared to Rs 5.33 in Q1FY26 and Rs 4.93 in Q4FY26.

Business Highlights:

  • Exceptional Items: During Q1FY27, the Company reported an exceptional item of Rs 209 lakh (Rs 2.09 crore) representing the write-off of Capital Work-in-Progress (CWIP).
  • Subsidiary Structure: As of June 30, 2026, the Company has three subsidiaries: Pinnacle Life Science Private Limited, Aarti Speciality Chemicals Limited, and Pinnacle Chile SpA, along with two step-down subsidiaries: Pharma Go SpA and Tripharma Chile SpA.
  • Expansion Status: The Company is engaged in routine expansion plans as evidenced by the details regarding the administrative building at E1.

Adhish Patil, CFO & COO, Aarti Drugs, said: “We began FY27 with a strong operational and financial performance, driven by a mix of volume growth and improved realizations across our API & Speciality Chemicals portfolio and disciplined execution. The quarter marked a recovery in the pricing environment compared to the previous year, while our continued focus on operational efficiencies and product mix supported profitability. Despite an uncertain and volatile global environment, Aarti Drugs delivered a robust quarter as production across our facilities continued without disruption, reflecting the resilience of our business model.

EBITDA increased by 30% YoY to Rs 96.9 crore, and EBITDA margins expanded by 120 basis points to 13.8%. Product mix optimization and operational efficiencies strengthened profitability.

The demand outlook for our product portfolio looks encouraging. The company's USFDA and UK approvals for facilities remain important growth drivers, supporting expansion in regulated markets.

Sayakha continued its planned ramp-up during the quarter, operating at nearly 65% utilization and progressively contributing to our backward integration capabilities. We are also expanding our oral solid dosage (OSD) capabilities through brownfield and adjacent plot developments in Baddi, Himachal Pradesh which is expected to double our production capacity.

Operationally, we remain focused on improving capacity utilization, optimizing product mix and enhancing manufacturing efficiencies across our facilities. These initiatives, together with the continued ramp-up of Sayakha, are expected to progressively improve operating leverage and strengthen margin performance over the medium term.

Looking ahead, global demand continues to remain resilient, and we aim to enhance ourselves on the regulatory-compliance front to continue to capitalize on opportunities. Alongside this, investments in process optimization, capacity enhancement, backward integration, and operational efficiencies remain a focus.”

Result PDF

Result PDF

Pharmaceuticals company Aarti Drugs announced Q4FY26 & FY26 results

Q4FY26 Consolidated Financial Highlights:

  • Revenue stood at Rs 721.1 crore as compared to Rs 678.6 crore in Q4FY25 and Rs 602.9 crore in Q3FY26, reflecting a growth of 6% YoY and 20% QoQ respectively
  • EBITDA stood at Rs 96.6 crore versus Rs 95.2 crore in Q4FY25 and Rs 56.3 crore in Q3FY26, flat YoY and a growth of 72% QoQ. EBITDA margin stood at 13.4%
  • PAT stood at Rs 55.3 crore as compared to Rs 62.8 crore in Q4FY25 and Rs 40.5 crore in Q3FY26, a degrowth of 12% YoY and up 36% QoQ. PAT margin translated to 7.7% for Q4FY26

FY26 Consolidated Financial Highlights:

  • Revenue stood at Rs 2,567.7 crore as compared to Rs 2,403.4 crore in FY25, reflecting a growth of 7% YoY
  • EBITDA stood at Rs 311.6 crore versus Rs 303.5 crore in FY25, up 3% YoY, with EBITDA margin at 12.1%
  • PAT stood at Rs 194.9 crore as compared to Rs 168.2 crore in Q4FY25, up 16% YoY, translating to a PAT margin of 7.6%

Q4FY26 Standalone Business Highlights:

  • Revenue stood at Rs 631.7 crores vs. Rs 623.0 crores in Q4FY25
  • Standalone business contributed 88% to the consolidated revenue
  • 63% of the standalone revenue came from the domestic market and 37% from the exports market
  • Domestic revenue grew 7% YoY and export revenue declined by 7% YoY
  • Within the API business, the anti-biotic therapeutic category contributed 37.8%, anti-protozoal 19.6%, anti-inflammatory 11.9%, anti-diabetic 15.0%, antifungal 10.0% and the rest contributed 5.7% to total API sales

Business Highlights:

  • Revenue from formulations stood at Rs 91.3 crore compared to Rs 64.8 crore in Q4FY25, up 41% YoY. Exports contributed 69% to this revenue
  • For FY26, formulation revenue was Rs 330.5 crore compared to Rs 284.9 crore in FY25, up 16%, with exports accounting for 65% of total formulation sales

Adhish Patil, CFO & COO, Aarti Drugs, said, “FY26 marked an important transition year for Aarti Drugs Limited, as the Company progressed through a major investment and commissioning cycle while navigating a challenging industry environment. Despite persistent macroeconomic headwinds, pricing pressure in select API segments, and elevated raw material volatility, our core business delivered a strong sequential recovery during Q4FY26, supported by operational scale-up of the Sayakha facility, improving export traction and a better product mix.

Total revenue for Q4FY26 stood at Rs 721.1 crore, reflecting growth of 6% YoY. EBITDA remained flat YoY to Rs 96.6 crore, with margin at 13.4%, a decline of 60 bps. The year’s profitability remained impacted by two key factors — start-up losses associated with the new facilities, and continued weakness in the domestic antibiotics market.

On a sequential basis, however, performance improved sharply, with revenue and EBITDA rising 20% and 72% respectively, and margins expanding by 410 basis points compared to the previous quarter. This was primarily due to the strong execution progress in our Sayakha facility, which achieved a milestone run-rate of ~1,000 tonnes per month in March 2026. While the scale-up trajectory could have been faster, temporary ammonia shortages impacted production. Nevertheless, the project has now entered a more stable operating phase and is expected to progressively enhance margin resilience and backward integration benefits going forward.

We are also encouraged by the continued improvement in our business mix. Regulated market contribution increased from 66% in FY25 to 73% in FY26, while exports contribution rose from 35% to 38% over the same period. This shift toward regulated and export-oriented business continues to support margin quality and earnings stability. Diversification initiatives also gained momentum during the year, with the Formulations and Specialty Chemicals segments growing 33% and 37% YoY, respectively.

From an industry perspective, FY26 witnessed sustained pressure on API realizations, especially during the first half of the year. However, pricing trends began stabilizing from September 2025 onwards, with the recovery trajectory strengthening further during Q4FY26. At the same time, the sharp increase in key raw material prices and logistics costs — exacerbated by supply chain disruptions arising from geopolitical tensions in West Asia — created additional cost pressures across the industry. Despite these challenges, the Company was able to partially offset cost inflation through calibrated price increases and improved product mix across its core portfolio.

The Company’s broad product basket, diversified customer base, and increasing share of regulated market business continue to mitigate concentration risks while improving business resilience. Regulatory filings and approvals across the EU and US markets remain a strategic priority, as these markets offer significant realization and margin upside for several existing products. The foundations built over the last few years — including backward integration, expanded regulatory approvals, formulations capability, and specialty product development — position the Company favourably for a meaningful improvement in profitability and return ratios over FY27 and beyond.”

Result PDF

Pharmaceuticals company Aarti Drugs announced Q3FY26 results

  • Revenue stood at Rs 602.9 crore as compared to Rs 557.1 crore in Q3FY25, reflecting a growth of 8% YoY.
  • EBITDA stood at Rs 56.3 crore versus Rs 62.3 crore in Q3FY25, down 10% YoY, with EBITDA margin at 9.3%.
  • PAT stood at Rs 40.5 crore as compared to Rs 25.7 crore in Q3FY25, up 58% YoY, translating to a PAT margin of 6.7%.

Adhish Patil, CFO & COO, Aarti Drugs, said: “During the third quarter of FY26, Aarti Drugs delivered a steady performance, supported by healthy traction in the domestic market and strong growth in the export formulations segment, which performed particularly well and contributed positively to overall margins. Total revenue for Q3FY26 stood at Rs 602.9 crore, growing 8% year-on-year, with EBITDA of Rs 56.3 crore with margins at 9.3%. While EBITDA saw a year-on-year contraction of 10%—largely due to transient market dynamics and the initial absorption of commissioning costs for new facilities during Q3FY26, January sales have shown encouraging momentum, with improved traction, indicating a positive trend for the coming quarters.

The cornerstone of our Q3 performance remains in the successful operationalization of our growth projects. Our state-of-the-art backward integration plant in Sayakha for methyl amines, is currently in its initial scaleup phase. During its very first quarter of operations, it achieved 30% capacity utilization, and we are confident in our ability to ramp this up to 50% by March or April 2026. Critically, this facility is currently fulfilling 10– 15% of our captive Metformin requirements, and we expect to be 100% self-reliant for this key intermediate within the next 6 to 8 months.

Our Salicylic Acid plant in Tarapur has hit a significant milestone, scaling to above ~300 tonnes per month recently. This marks a pivotal shift from import dependence to a self-sustained domestic supply chain. Furthermore, the downstream Salicylates line is currently under implementation, which we believe will transform this segment into a primary value driver for the company in the coming years.

On the regulatory front, certification and approval processes are progressing as planned. Audit observations are currently under review, and inspections have been conducted at one of the facilities as part of ongoing regulatory initiatives, including preparations for European approvals.

After several quarters of realization pressure, we have reached an inflection point aided by stable prices and volume momentum picking up. Overall, the Company remains focused on operational efficiency, margin improvement, and capacity ramp-up, while maintaining compliance with regulatory standards and capital discipline.”

Result PDF

Pharmaceuticals company Aarti Drugs announced Q2FY26 results

  • Revenue stood at Rs 652.9 crore as compared to Rs 599.8 crore in Q2FY25, reflecting a growth of 9% YoY, driven by favourable export volumes.
  • EBITDA stood at Rs 84.4 crore versus Rs 68.5 crore in Q2FY25, up 23% YoY, with EBITDA margin at 12.9% versus 11.4% in Q2FY25, an expansion of 150 basis points.
  • PAT stood at Rs 45.2 crore as compared to Rs 35.0 crore in Q2FY25, up 29% YoY, translating to a PAT margin of 6.9% versus 5.8% last year, an improvement of 110 basis points.

Adhish Patil, CFO & COO, Aarti Drugs, said: “We are pleased with the operational progress achieved during the quarter. Aarti Drugs posted revenue of Rs 652.9 crore in Q2FY26, growing 9% YoY, with EBITDA of Rs 84.4 crore, up 23%, with margin at 12.9%. For H1FY26, revenue was Rs 1,243.7 crore, up 8% YoY, with EBITDA of Rs 158.8 crore, up 18% with margin at 12.8%. The capex incurred during Q2FY26 was Rs ~45.6 crore. Overall, our Q2 results reflect the benefit of favorable export mix and disciplined execution.

Q2FY26 marked continued progress on our strategic priorities of backward integration, capacity expansion, and strengthening cost competitiveness, even as the broader industry witnessed soti domestic demand trends—particularly in the antibiotics category. Export demand, however, remained robust, offseting the weakness in the domestic market and contributing to improvement in our overall margins.

The commissioning of our Sayakha amines facility in September 2025 marks a pivotal step in backward integration, enhancing raw material security and margin resilience. Around 40–50% of captive requirements of Metiormin are now being met internally from this plant and is expected to scale up to fullfill the entire captive demand over the next 6-12 months.

Our salicylic acid operations at Tarapur are stabilizing well with near-term output of around 300 tonnes per month and targeting 500 tonnes per month for Q4FY26. This vertical will feed another 400 tonnes per month salicylates line, delivering downstream integration, beter overhead absorption and improved margin stability. These capacity additions aim to convert import dependence into domestic supply, and with the downstream salicylates line under implementation, this segment will become a key value driver in the coming years.

Aarti Drugs also continues to deepen its global presence with several EU and USFDA certifications obtained and some under-implementation for key products from large-scale plants. These approvals will enable export of higher-value APIs and formulations to regulated markets and from our lower-cost facilities.

With operating cash flows strengthening and capex largely behind us, the focus now shitis toward scaling utilization and converting our new assets into steady earnings contributors. Over FY27–FY29, we expect the combined contribution to drive sustainable margin expansion and value creation.”

Result PDF

Pharmaceuticals company Aarti Drugs announced Q1FY26 results

Q1FY26 Consolidated Financial Highlights:

  • Revenue stood at Rs 590.8 crore as against Rs 556.5 crore, a growth of 6% YoY.
  • EBITDA stood at Rs 74.4 crore as against Rs 66.1 crore, a growth of 12% YoY. EBITDA Margin stood at 12.6%, an increase of 70 basis points.
  • PAT stood at Rs 54.0 crore as against Rs 33.3 crore, an increase of 62% YoY. PAT Margin is at 9.1%, an increase of 310 basis points.

Q1FY26 Standalone Financial Highlights:

  • Revenue stood at Rs 521.3 crore vs Rs 493.1 crore in Q1FY25, growth by 6% YoY.
  • Standalone business contributed 86% to the consolidated revenue.
  • 65% of the revenues came from the domestic market and 35% from the exports market.
  • Domestic revenue remained flat YoY and exports increased by 18% YoY.
  • Within the API business, the anti-biotic therapeutic category contributed ~41%, anti-diabetic ~15%, anti-protozoal ~19%, anti-inflammatory ~12%, antifungal ~10% and the rest contributed ~4% to total API sales.

Adhish Patil, CFO & COO, Aarti Drugs, said: "In Q1 FY26, Revenues grew by 6% YoY to Rs 591 crore with Gross Profit Margins improving by 130 basis points YoY to 36.8%. EBITDA has increased by 12% YoY to Rs 74 crore and EBITDA Margins improving to 12.6%. The quarter witnessed improved demand for active pharmaceutical ingredients (APIs), leading to a recovery and growth in volumes as compared to Q1FY25.

During Q1FY26 the Company incurred Capex of ~Rs 48.5 crore mainly towards capacity expansion, backward integration and finished formulation R&D. For FY26, we expect Capex at ~Rs 150-200 crore.

The Company has started trial productions at its new greenfield manufacturing facility in Sayakha, Gujarat. This plant has been set up mainly for backward integration into anti-diabetic products and their intermediates, and is expected to largely serve internal requirements. This backward integration is a key strategic step that should help improve profit margins over time and reduce the risk of input costs volatility. This project will support internal requirements for our anti-diabetic product and choline chloride, contributing to backward integration, margin improvement, and supply chain de-risking.

The new greenfield Salicylic Acid plant at Tarapur is progressing well and is expected to begin contributing to the Company’s financials from the third quarter onwards. While the plant faced some initial start-up issues— typical during the early stages of new projects for inhouse developed technology—these have been effectively addressed and are being implemented at the plant scale. The Company is now focused on a calibrated ramp-up of operations, with a clear roadmap to scale production to over 800 tonnes per month and further expand the installed capacity to approximately 1,600 tonnes per month by the end of FY26.

A lot of new regulated customer audits have been triggered at the Tarapur facility. We also plan to expand this facility by putting more production blocks in future.

Recently, the USA government has announced high tariffs on pharmaceutical products and APIs imported from countries like China. This move is aimed at reducing their dependence on Chinese suppliers. This has the potential to reshape global supply chains. While this may disrupt sourcing patterns for several players, it also opens up new opportunities for Indian API manufacturers.

Aarti Drugs, with a recently USFDA approved API facility and established manufacturing capabilities, is strategically positioned to meet this demand shift. The commissioning of new capacity at Sayakha and Tarapur supports this readiness and enhances the Company's ability to serve regulated export markets. Our formulation subsidiary has also got USFDA approval for its Oncology facility & UKMHRA approval for our OSD facility; alongside we are on a path to develop and register new oncology dossiers across the globe which will drive the regulated market growth from FY27 onwards.

The Company remains focused on execution, cost optimization, and product mix enhancement to drive sustainable growth and margin improvement in the coming quarters.”

Result PDF

Pharmaceuticals company Aarti Drugs announced Q4FY25 & FY25 results

Q4FY25 Financial Highlights:

  • Revenue stood at Rs 678.6 crore as against Rs 621.1 crore, a growth of 9% YoY.
  • EBITDA stood at Rs 95.2 crore as against Rs 86.9 crore, a growth of 10% YoY. EBITDA Margin stood at 14%.
  • PAT stood at Rs 62.8 crore as against Rs 47.3 crore, an increase of 33% YoY. PAT Margin is at 9.2%.

FY25 Financial Highlights:

  • Revenue stood at Rs 2,403.4 crore as against Rs 2,532.6 crore, a decline of 5% YoY.
  • EBITDA stood at Rs 303.4 crore as against Rs 320.5 crore, a decline of 5% YoY. EBITDA Margin stood at 12.6%.
  • PAT stood at Rs 168.1 crore as against Rs 171.6 crore, a decline of 2% YoY. PAT Margin is at 7.0%.

Adhish Patil, CFO & COO, Aarti Drugs, said: "In Q4 FY25, Revenues grew by 9% to Rs 679 crore with EBITDA Margins improving to 14%. During the quarter, we witnessed strong global demand for APIs, driving a 15.5% growth in volumes, primarily led by exports. Benefiting from improved operating leverage and stable input costs, we achieved ~14.5% EBITDA Margins in the standalone business.

FY25 was a challenging year, beginning with muted global demand and elevated raw material costs, which impacted overall performance. Greater than expected market volatility, particularly due to falling input prices, led to a 5% YoY revenue decline. Despite the challenges, the Company improved cost efficiency and operational discipline over the year, which helped maintain our EBITDA Margins at 12.6%. Margin performance improved significantly in H2FY25, driven by stabilization in input costs.

During FY25, the Company incurred Capex of ~Rs 177 crore mainly towards capacity expansion, backward integration and new product launches. This has been mainly funded through internal accruals and partly through term loans. Additionally, the Company distributed ~Rs 69 crore to shareholders in FY25, while maintaining a healthy consolidated Debt to Equity ratio of 0.45.

The greenfield project at Sayakha, Gujarat, dedicated to backward integration of our anti-diabetic product along with few more intermediates, has commenced trial production which is expected to stabilize soon within the current quarter. This is anticipated to contribute meaningfully to the Company’s profitability over a long period of time.

The Tarapur greenfield project had certain initial operational challenges, which have now been largely resolved. The Company remains focused on a gradual production scale-up, targeting over 700 tonnes per month by June 2025 and aiming to reach a cumulative capacity of approximately 1,600 tonnes per month by the end of FY26.

Amid API pricing pressures from raw material cost fluctuations, heightened competition, regulatory changes, and the ongoing pharmaceutical tariff war between China and the USA, the Company remains focused on driving sustainable growth and profitability. The US-China trade tensions have exacerbated volatility in raw material costs, disrupted global supply chains, and created uncertainty in pricing structures within the sector. These trade dynamics have also affected the cost structure and availability of critical APIs, challenging manufacturers globally.

Despite these pressures, the Company is concentrating on operational efficiencies, strategic market expansion, and supply chain optimization. We remain committed to navigating these external challenges with resilience and continues to focus on initiatives aimed to strengthen our position in the global market.”

Result PDF

Pharmaceuticals company Aarti Drugs announced Q3FY25 results

  • Revenue stood at Rs 568.5 crore as against Rs 607.6 crore, a decline of 6% YoY
  • EBITDA stood at Rs 62.3 crore as against Rs 71.8 crore, and decline of 13%YoY. EBITDA Margin (%) stood at 11.2%, down by 60 basis points
  • PAT stood at Rs 37.1 crore as against Rs 36.7 crore, and increase of 1% YoY. PAT Margin (%) stood at 6.5%.

Adhish Patil, CFO & COO, of Aarti Drugs said, “This quarter has presented significant challenges for our API segment, with both revenue and profit declining on a year-on-year basis. This is mainly due to reduced market prices and weaker demand. Although prices remained stable during the December quarter, there was a negative price variance when compared to the same period last year.

Formulation segment revenue stood at Rs 48.6 crore for the quarter, with an export contribution of 47.% whereas in 9MFY25 revenue stood at Rs 186.9 crore.

The greenfield project at Sayakha, Gujarat for Speciality Chemicals will commence trial production in this quarter. With this, the operating leverage is expected to kick in from the subsequent quarter with improved capacity utilization.

There had been certain teething issues in Tarapur greenfield project, which are sorted now and we expect to ramp up the production to 500 tonnes per month by the end of March’25. In total we will have sequential ramp up of capacity to 1,600 tonnes per month by end of FY26.

During 9MFY25, the Company has incurred Capex of ~Rs 136 crore mainly towards capacity expansion, backward integration and new product launches. We anticipate a total Capex of ~Rs 200 crore for the full year. This Capex would we mainly through internal accruals and partly through term loans.

Despite facing these short-term challenges, we are staying focused on our long-term goals. We are confident about achieving double digit growth in revenues with EBITDA Margins of 13%-14% in FY26 which is a healthy indicator of our financial stability and operational efficiency.

Despite API pricing pressures, driven by fluctuating raw material costs, heightened competition, and regulatory demands in global markets we remain committed to achieving growth and profitability by enhancing operational efficiencies and expanding our market presence. We are dedicated to tackling these challenges and emerging stronger in the future."

Result PDF

Pharmaceuticals company Aarti Drugs announced H1FY25 & Q2FY25 results

Q2FY25 Standalone Financial Highlights:

  • Revenue stood at Rs 543.1 crore as against Rs 577.5 crore, down by 6% YoY.
  • Standalone business contributed ~89% to the consolidated revenue for the quarter.
  • ~66% of the revenues came from the domestic market and ~34% from the exports market.
  • Within the API business, the antibiotic therapeutic category contributed ~40%, anti-diabetic ~18%, antiprotozoal ~17%, anti-inflammatory ~10%, antifungal ~10% and the rest contributed ~4% to total API sales

Q2FY25 Consolidated Financial Highlights:

  • Revenue stood at Rs 599.8 crore as against Rs 642.2 crore, a decline of 7% YoY. This is on account of lower realizations stemming from negative rate variance and subdued market demand in the API business.
  • EBITDA stood at Rs 68.5 crore as against Rs 77.1 crore, a decline of 11% YoY. EBITDA Margin (%) stood at 11.5%.
  • PAT stood at Rs 35.0 crore as against Rs 39.6 crore, a decline of 12% YoY. PAT Margin (%) stood at 5.8%

H1FY25 Consolidated Financial Highlights:

  • Revenue stood at Rs 1,156.3 crore as against Rs 1,303.9 crore, a decline of 11% YoY.
  • EBITDA stood at Rs 134.6 crore as against Rs 161.8 crore, a decline of 17% YoY. EBITDA Margin (%) stood at 11.7%.
  • PAT stood at Rs 68.2 crore as against Rs 87.6 crore, a decline of 22% YoY. PAT Margin (%) stood at 5.9%

Adhish Patil, CFO & COO, of Aarti Drugs said: “During Q2FY25, we have seen a drop in revenues and profitability on a year-on-year basis mainly due to lower realizations stemming from negative rate variance and subdued market demand in the API business. The volumes have remained flattish on a YoY basis whereas we have seen a growth of 10% from the last quarter.

Since Q1, the prices have stabilized, and volumes have grown which has led to a growth of 8% in revenues on a QoQ basis. We expect pricing to improve going ahead.

Formulation segment revenue stood at Rs 65.6 crore for the quarter, with exports contribution of ~53%. In H1FY25 revenue stood at Rs 136.6 crore.

The greenfield project at Sayakha, Gujarat for Speciality Chemicals is expected to commence in this quarter. With this, the operating leverage is expected to kick in from the second half of the year with improved capacity utilization.

The production of Salicylic Acid has commenced and currently we are producing 100 tonnes per month. There have been certain teething issues, and we expect to ramp up the production to 300 tonnes by end of October’24. In total we will have sequential ramp up of capacity to 1,800 tonnesthroughout FY25 & FY26.

During H1 FY25, the Company has incurred Capex of ~Rs 90 crore mainly towards capacity expansion, backward integration and new product launches. We anticipate a total Capex of ~Rs 200 crore for the full year. This Capex would we mainly through internal accruals and partly through term loans.

The Pharma API manufacturing industry is constantly evolving, and we are committed to staying ahead of the curve. We continue to expand our capabilities and enhance our offerings to meet the ever-changing needs of our customeRs We also plan to invest in new technologies and equipment that will help us streamline our processes and improve efficiency.”

Result PDF

Pharmaceuticals company Aarti Drugs announced Q1FY25 results:

Consolidated:

  • Revenue stood at Rs 556.5 crore as against Rs 661.7 crore, a decline of 15.9% YoY
  • EBITDA stood at Rs 66.1 crore as against Rs 84.7 crore, a decline of 22.0% YoY. EBITDA Margin (%) stood at 11.9%
  • PAT stood at Rs 33.3 crore as against Rs 48.0 crore, a decline of 30.6% YoY. PAT Margin (%) stood at 6.0%

Standalone:

  • Revenue stood at Rs 493.1 crore as against Rs 592.3 crore, down by 16.8% YoY
  • Standalone business contributed ~87% to the consolidated revenue for the quarter
  • ~69% of the revenues came from the domestic market and ~31% from the exports market
  • Domestic revenue down ~16% while exports down ~18% YoY
  • Within the API business, the antibiotic therapeutic category contributed ~43%, anti-diabetic ~14%, anti-protozoal ~18%, anti-inflammatory ~9%, antifungal ~10% and the rest contributed ~6% to total API sales

Commenting on the same, Adhish Patil, CFO & COO, Aarti Drugs Limited said, “During the quarter gone by, there has been a drop in revenues and profitability mainly due to lower realizations stemming from negative rate variance and subdued market demand in APIs business. Relatively lower capacity utilization for the quarter weighed negatively on the EBITDA margins. Going ahead in FY25, we anticipate an improvement in margins, mostly driven by an anticipated growth in export sales and backward integration.

Formulation segment’s revenue stood at Rs 70.4 crore for the quarter, a growth of 4.2% Q-o-Q. In the last quarter, we commenced our facility for dermatology products in Tarapur. We faced teething issues on the same which led to increased costs of ~Rs. 6 crore in the quarter. We expect to ramp up the production of this facility in Sep’24 and Dec’24 quarters progressively.

The greenfield project at Gujarat Sayakha for Speciality Chemicals is on track which we plan to commence by end of Q2 FY25. With this, the operating leverage is expected to kick in from the second half of the year with improved capacity utilization.

During Q1FY25, the Company incurred Capex of Rs 52 crore mainly towards capacity expansion, backward integration and new product launches. We anticipate a total Capex of ~Rs. 200 crore for the full year. This Capex would we mainly through internal accruals and partly through term loans.

In June 2024, a fire occurred at N-198 unit which manufactures certain API products for external customers. Production operation of the said unit had been temporarily disrupted which began operationsin July 2024. The unit has adequate insurance coverage for the same.

The Pharma API manufacturing industry is constantly evolving, and we are committed to staying ahead of the curve. We continue to expand our capabilities and enhance our offerings to meet the ever-changing needs of our customers. We also plan to invest in new technologies and equipment that will help us streamline our processes and improve efficiency.”

Result PDF

Pharmaceuticals company Aarti Drugs announced consolidated Q4FY24 & FY24 results:

Q4FY24 Financial Highlights:

  • Revenue stood at Rs 621.1 crore as against Rs 743.3 crore, a decline of 16.4% YoY
  • EBITDA stood at Rs 86.9 crore as against Rs 94.4 crore YoY. EBITDA Margin (%) came in at 14.0%
  • PAT stood at Rs 47.3 crore as against Rs 56.2 crore YoY. PAT Margin (%) stood at 7.6%

FY24 Financial Highlights:

  • Revenue stood at Rs 2,532.6 crore as against Rs 2,718.2 crore, a decline of 6.8% YoY
  • EBITDA stood at Rs 320.5 crore as against Rs 307.8 crore YoY. EBITDA Margin (%) came in at 12.7%
  • PAT stood at Rs 171.6 crore as against Rs 166.4 crore YoY. PAT Margin (%) stood at 6.8%

Commenting on the same, Adhish Patil, CFO & COO, Aarti Drugs said, “We are pleased with our financial and operational performance in FY24 amid geopolitical uncertainties and macroeconomic factors and price volatilities. The company demonstrated resilient performance in FY24, where topline declined by 7% YoY during full year FY24, attributed to lower realizations stemming from negative rate variance and subdued export market demand in APIs business. However, there has been a notable improvement in gross margins, credited to the stabilization of input costs in latter half of FY24 and operational efficiencies across the majority of our product lines. Furthermore, we anticipate a further enhancement in gross margins in future, mostly driven by upturn in selling price levels and an anticipated growth in export sales. EBITDA Margin for FY24 improved by ~140 basis points and PAT margins improved by ~70 basis points due to improved gross contributions in standalone as well as formulation business along with efficient working capital management.

For Q4FY24, the company’s performance improved considerably on a sequential basis due to ease in the input costs and better product mix. On a sequential basis, the EBITDA margins improved by ~220 bps due to operating leverage driven by improved capacity utilization.

Amidst heightened interest rates, dollar shortages, destocking, supply chain hurdles, and conservative ordering, export demand encountered challenges in select regions during Q4 and FY24. Nonetheless, we anticipate a positive shift in the export landscape in the near future, on back of interest rate reductions, low stock levels and an upswing in demand. Despite these hurdles, our outlook remains optimistic, on attaining our growth and margin targets.

Formulation segment’s revenue stood at Rs 67.6 crore for the quarter, a growth of 19% YoY with exports contribution of ~62%. In FY24 revenues stood at Rs 324.6 crore, with growth of 18.5% YoY

In the Specialty Chemical industry, although India's domestic chemicals demand is projected to remain robust in 2024, with low expectations in price increase. The market faces various challenges of finding equilibrium amidst the introduction of new production capacities within the country, shifting trade dynamics, subdued global demand, and fluctuating upstream prices.

The company’s balance sheet continued to remain healthy with leverage remaining comfortably at 0.44x.

The capex for FY24 stood at ~Rs. 226 crore. Recently, Greenfield project at Tarapur Facility for dermatology products has been commenced and the ramp up is planned throughout H1 FY25. Greenfield Project at Gujarat Sayakha for Speciality Chemicals is on track which we plan to commence by end of Q1 FY25. With this, the operating leverage is expected to kick in from H2 FY25 with improved capacity utilization.

The company has incurred a capex of ~ Rs 543 crore in the last 3 years, mainly towards capacity expansion, backward integration and new product launches across API & Formulation segment. The majority of the company’s ? 600 crore capex has been completed and balance is expected to be completed soon. These initiatives are expected to reduce the costs along with expansion in the profit margins and the topline growth.

The Pharma API manufacturing industry is constantly evolving, and we are committed to staying ahead of the curve. In the upcoming year, we plan to continue expanding our capabilities and enhancing our offerings to meet the ever-changing needs of our customers. One of our key goals for the upcoming year is to improve our capacity utilisation, allowing us to better serve our growing customer base. We also plan to invest in new technologies and equipment that will help us streamline our processes, reduce carbon footprint and improve efficiency.”

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