Date: 1st August 2026

Consolidated Financial Performance

Revenue and Profitability

  • Total Revenue stood at ₹703.6 crore in Q1 FY27 compared to ₹590.8 crore in Q1 FY26, showing 19% YoY growth. Sequentially, revenue declined 2% from ₹721.1 crore in Q4 FY26.
  • Gross Profit was ₹276.0 crore, up 27% YoY from ₹217.4 crore in Q1 FY26, and showed 2% sequential growth from ₹270.7 crore in Q4 FY26.
  • EBITDA reached ₹96.9 crore, recording 30% YoY growth from ₹74.4 crore in Q1 FY26. Sequentially, EBITDA remained flat (0% change) from ₹96.6 crore in Q4 FY26. Q1 FY27 EBITDA includes an additional ~₹2 crores expense of a CWIP write-off.
  • EBITDA Margin expanded by 120 basis points YoY to 13.8% from 12.6% in Q1 FY26. Sequentially, margin expanded by 40 basis points from 13.4% in Q4 FY26.
  • Profit Before Tax (PBT) was ₹69.2 crore, showing 35% YoY growth from ₹51.1 crore in Q1 FY26. Sequentially, PBT declined 2% from ₹70.4 crore in Q4 FY26.
  • PBT Margin expanded by 120 basis points YoY to 9.9% from 8.7% in Q1 FY26. Sequentially, margin expanded by 10 basis points from 9.8% in Q4 FY26.
  • Profit After Tax (PAT) was ₹50.1 crore, showing a 7% YoY decline from ₹54.03 crore in Q1 FY26. Sequentially, PAT declined 9% from ₹55.3 crore in Q4 FY26. Q1 FY26 PAT included a principal tax refund of ~₹15 crores. Excluding this one-time benefit, PAT growth would be 29% YoY.
  • EPS stood at ₹5.49 compared to ₹5.91 in Q1 FY26 and ₹6.05 in Q4 FY26.

Segmental Performance

Standalone Business Performance

  • Standalone Revenue (including other income) stood at ₹627.6 crores versus ₹521.3 crores in Q1 FY26, showing 20% YoY growth.
  • Standalone business contributed 89% to the consolidated revenue.
  • 68% of standalone revenue came from the domestic market and 32% from exports market.
  • Domestic revenue grew 25% YoY while export revenue grew by 12% YoY.

API Business Breakdown

Within the API business, the therapeutic category contribution was:

  • Anti-biotic: 35.0%
  • Anti-protozoal: 18.5%
  • Anti-inflammatory: 11.9%
  • Anti-diabetic: 18.2%
  • Antifungal: 10.2%
  • Others: 6.1%

Formulations Segment

  • Revenue from formulations stood at ₹81.60 crore compared to ₹75.8 crore in Q1 FY26, up 8% YoY.
  • Exports contributed 74% to formulations revenue.

Operational and Strategic Updates

Facility Utilization and Expansion

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

Management Commentary

Mr. Adhish Patil, CFO & COO, commented on the performance:

  • Strong operational and financial performance driven by volume growth and improved realizations across API & Specialty Chemicals portfolio
  • Recovery in pricing environment compared to previous year
  • Focus on operational efficiencies and product mix supported profitability
  • Production across facilities continued without disruption despite volatile global environment
  • Demand outlook for product portfolio looks encouraging
  • USFDA and UK approvals for facilities remain important growth drivers for regulated markets expansion
  • Operational focus on improving capacity utilization, optimizing product mix, and enhancing manufacturing efficiencies
  • Initiatives expected to progressively improve operating leverage and strengthen margin performance over medium term
  • Investments in process optimization, capacity enhancement, backward integration, and operational efficiencies remain a focus

Company Background

Aarti Drugs Limited, established in 1984, is part of $6 Billion Aarti Group of Industries with R&D Division at Tarapur, Maharashtra. The company manufactures Active Pharmaceutical Ingredients (APIs), Pharma Intermediates, Specialty Chemicals, and Formulations through its wholly-owned subsidiary Pinnacle Life Science Private Limited. The company has 14 manufacturing facilities (10 in Maharashtra, 3 in Gujarat, and 1 of Pinnacle in Himachal Pradesh).