loader2
Login Open ICICI 3-in-1 Account
Open ICICI 3-in-1 Account

Aarti Drugs Results: Latest Quarterly Results & Analysis

Open Free Trading Account Online with ICICIDIRECT
+91
Aarti Drugs Ltd. 10 Nov 2025 12:40 PM
Result PDF

Q2FY26 Quarterly Result Announced for Aarti Drugs Ltd.

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

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.”

Result PDF

Pharmaceuticals company Aarti Drugs announced Q2FY24 & H1FY24 results:

  • Consolidated Q2FY24:
    • Revenue stood at Rs 642.2 crore as against Rs 687.8 crore, a decline of 6.6% YoY
    • EBITDA stood at Rs 77.1 crore as against Rs 74.3 crore YoY. EBITDA Margin (%) came in at 12.0%
    • PAT stood at Rs 39.6 crore as against Rs 38.7 crore YoY. PAT Margin (%) stood at 6.2%
  • Consolidated H1FY24:
    • Revenue stood at Rs 1,303.9 crore as against Rs 1,310.0 crore, a decline of 0.5% YoY
    • EBITDA stood at Rs 161.8 crore as against Rs 141.7 crore YoY. EBITDA Margin (%) came in at 12.4%
    • PAT stood at Rs 87.6 crore as against Rs 73.5 crore YoY. PAT Margin (%) stood at 6.7%
  • Business Highlights:
    • Standalone Q2FY24 revenue stood at Rs 577.5 crore as against Rs 624.8 crore, a decline of 7.6% YoY
    • The standalone business contributed ~87% to the consolidated revenue for the quarter
    • API volumes grew considerably at ~10%, led by secular growth across acute as well as chronic therapies
    • ~67% of the revenues came from the domestic market and 33% from the exports market for Q2FY24 for a standalone business
    • Domestic revenue grew by ~1.0% while exports declined by ~21.0% YoY for Q2FY24
    • Within the API business, the antibiotic therapeutic category contributed ~47%, anti-diabetic ~16%, anti-protozoal ~17%, anti-inflammatory ~10%, antifungal ~8% and the rest contributed ~2% to total API sales for Q2FY24
    • Q2FY24 revenue from formulation stood at Rs 86.6 crore as against Rs 82.5 crore, registering a growth of 5% YoY. ~49% of the revenue contribution is from exports during the quarter

Commenting on the same, Adhish Patil, CFO & COO, Aarti Drugs said, “Despite the geopolitical uncertainties and macro-economic volatilities, the company was able to achieve ~10% volume growth YoY in APIs amid lower realisations, which impacted revenues in Q2FY24. In H1FY24, APIs revenue grew around ~1.0% YoY. However, we have witnessed improvement in margins, due to operational efficiencies and input cost stabilisation for the majority of our products.

Moreover, export demand has been sluggish for some of the geographies for APIs in the H1FY24 on account of USD shortages, increased interest rates, and cautious spending by customers. The company witnessed a marginal increase in OPEX due to one-time buyback costs, Labour rates revision, and other expenses. Nevertheless, we are optimistic about attaining growth and margin goals.

Formulation segment revenue stood at Rs 86.6 crore for the quarter, a growth of 5.0% YoY with exports contribution of ~49% whereas in H1FY24 revenue stood at Rs 176.5 crore, with a growth of 5.3% YoY.

Specialty Chemical industry, globally, the demand visibility has been weak due to the absence of a couple of campaign-based products in H1FY24 which has impacted this segment. Moreover, there is some spillover of execution of campaign-based Specialty products into the next quarter.

The capex for H1FY24 stood at ~Rs 109 crore and is expected to be in the range of Rs 250-300 crore for the full year FY24. We expect the Gujarat Sayakha Project, Tarapur Capex on Dermatology and Specialty Chemical to get completed by mid-H2FY24 which shall lead to improvement in margins once these projects are commissioned and capacity utilization is ramped up.

Despite short-term challenges, we remain optimistic about the growth avenues for our API and non-API business. All our growth plans shall enable steady growth over the next few years, basis the completion of ongoing projects and better utilization of current capabilities. The pace of growth in exports is expected to continue in the formulation business.”

 

 

Result PDF

Pharmaceuticals company Aarti Drugs announced Q1FY24 results: 

  • Consolidated Q1FY24:
    • Revenue stood at Rs 661.7 crore as against Rs 622.2 crore, a growth of 6% YoY
    • EBITDA stood at Rs 84.7 crore as against Rs 67.4 crore YoY. EBITDA Margin (%) came in at 12.8%
    • PAT stood at Rs 48.0 crore as against Rs 34.8 crore YoY. PAT Margin (%) stood at 7.3%
  • Standalone Q1FY24:
    • Standalone Q1FY24 revenue stood at Rs 591.6 crore as against Rs 551.2 crore, a growth of 7.3% YoY
    • The standalone business contributed ~86% to the consolidated revenue for Q1FY24
    • API volumes grew considerably at ~18%, led by secular growth across acute as well as chronic therapies
    • ~68% of the revenues came from the domestic market and 32% from the exports market for Q1FY24 for a standalone business
    • Domestic revenue grew approximately by 13.6% while exports de-grew by around 4.0% YoY for Q1FY24
    • Within the API business, the antibiotic therapeutic category contributed ~48%, anti-diabetic ~13%, anti-protozoal ~17%, anti-inflammatory ~11%, antifungal ~7% and the rest contributed ~4% to total API sales for Q1FY24
    • Q1FY24 revenue for formulation stood at Rs 89.9 crore as against Rs 85.0 crore. ~67% of the revenue contribution is from exports during Q1FY24

Commenting on the same, Adhish Patil, CFO & COO, Aarti Drugs said, “The company posted revenue growth of ~6.3% YoY in Q1FY24, which was primarily driven by good volume growth getting partially set off by the downward rate variance. Growth in API business was led by volume growth of 18% driven by domestic market demand uplift. The company expects improved margin levels each quarter from now onwards as the input price is seen to be stabilized, which is also witnessed in our Q1FY24 margin performance, though there might be a few products specific instances where raw materials are still showing a downward trend. Moreover, exports have been a laggard for API this quarter due to USD shortages for some of the export geographies.

Formulation segment revenue stood at Rs 90 crore for the quarter, a growth of 6% YoY. The formulation segment contributed ~14% to the consolidated revenue for the quarter. Exports continued to remain a key focus area for the formulation segment. ~67% of the formulation revenue came from exports during the quarter led by new business gains.

The specialty Chemical industry, globally, has been in a tepid environment where demand is seen as weaker which also affected our business in some ways. We have set out action plans to mitigate this impact and expect to grasp every possible opportunity to grow in this area. Specialty Chemical business was impacted YoY, due to the absence of a couple of campaign-based products in the Jun’23 quarter.

The CAPEX for Q1 FY24 stood at ~Rs 48 crore and is expected to be in the range of Rs 250-350 crore for FY24. With all the Capex plans getting executed this fiscal year i.e. Gujarat Saykha Capex, Tarapur Capex on Dermatology and Specialty chemical, which are high margin accretive segments that will gain better growth to our business. Due to some external factors, the project is now expected to come into commercial operations in Q3FY24.

Looking beyond the short-term challenges, we remain positive about the opportunities both in API and non-API business. The growth trajectory is expected to be healthy for all the segments in the upcoming period driven by the execution of existing projects and higher utilization of existing capacities. The pace of growth in exports is expected to continue in the formulation business.”

 

 

Result PDF

Pharmaceutical company Aarti Drugs announced Q4FY23 & FY23 results:

  • Q4FY23:
    • Revenue stood at Rs 743.3 crore as against Rs 697.2 crore, a growth of 7% YoY
    • EBITDA stood at Rs 94.4 crore as against Rs 89.0 crore YoY. EBITDA Margin (%) came in at 12.7%
    • PAT stood at Rs 56.2 crore as against Rs 55.3 crore YoY. PAT Margin (%) stood at 7.6%
    • Domestic revenue grew approximately by 13% while exports grew by around 7% YoY for Q4FY23
    • Q4FY23 revenue for formulation stood at Rs 56.8 crore as against Rs 66.6 crore
    • Approximately 60% of the revenue came from exports during Q4FY23
  • FY23:
    • Revenue stood at Rs 2,718.2 crore as against Rs 2,500.0 crore, a growth of 9% YoY
    • EBITDA stood at Rs 307.8 crore as against Rs 340.8 crore YoY. EBITDA Margin (%) came in at 11.3%
    • PAT stood at Rs 166.4 crore as against Rs 205.0 crore YoY. PAT Margin (%) stood at 6.1%

Result PDF

Trending News

Midhani has secured an order of Rs. 121.75 crore

Midhani has secured an order of Rs. 121.75 crore

Published on 19-Dec-2025 09:02

Aeroflex Industries Board has approved a ₹97.56 crore expansion plan

Aeroflex Industries Board has approved a ₹97.56 crore expansion plan

Published on 19-Dec-2025 09:01

As per media sources, HDFC Bank has raised a $1 billion three-year overseas loan from its GIFT City branch

As per media sources, HDFC Bank has raised a $1 billion three-year overseas loan from its GIFT City branch

Published on 19-Dec-2025 09:00

TCS, on its Investor Day 2025, articulated a clear shift towards an AI-first enterprise

TCS, on its Investor Day 2025, articulated a clear shift towards an AI-first enterprise

Published on 18-Dec-2025 09:07

Syrma SGS Technology has completed the first tranche of its acquisition of defence and aerospace electronics firm Elcome Integrated Systems

Syrma SGS Technology has completed the first tranche of its acquisition of defence and aerospace electronics firm Elcome Integrated Systems

Published on 18-Dec-2025 09:06

POWERGRID has commissioned the Western Region Expansion Scheme-XXV

POWERGRID has commissioned the Western Region Expansion Scheme-XXV

Published on 18-Dec-2025 09:05

Disclaimer – I ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is acting as a distributor to solicit bond related products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein mentioned are solely for informational and educational purpose.
Download App

Download Our App

Play Store App Store
market app
✕
Application status