Financial Performance

Aarti Pharmalabs Limited reported standalone revenue of ₹1,798 Crores (1.48% growth YoY) and PAT of ₹176 Crores for FY 2025-26, representing a 32% decline from ₹257.35 crore in FY25. The company recommended a final dividend of ₹2 per share, bringing total dividend for FY26 to ₹3.50 per share. Consolidated financials showed total income of ₹1,819.44 Crores with PAT of ₹174.71 Crores and EPS of ₹19.27.

Operational Highlights and Expansion

The company commissioned Phase 1 of its Atali greenfield facility with 450+ KL reactor capacity and is expanding Xanthine capacity from 5,000 to 9,000 MTPA. Capex of ₹400 Crores was executed in FY26 with similar levels expected in FY27. The CDMO business grew 32% YoY to ₹276 Crores, achieving highest-ever quarterly revenue in Q4, while API and Intermediates faced challenges due to pricing corrections and raw material inflation.

Financial Position and Accounting Matters

Total assets stood at ₹3,327.76 crore with increased borrowings to ₹685.63 crore (from ₹394.86 crore in FY25) primarily for capex funding. Auditors highlighted an emphasis of matter regarding a foreign exchange derivative contract (target redemption forward) entered in FY25 that was not fair-valued until FY26, resulting in a ₹29.73 crore impact recognized in FY26 P&L. The company also recognized an exceptional item of ₹2.79 crore relating to new labour code impacts on employee benefits.

Corporate Governance and Leadership Changes

The 7th Annual General Meeting is scheduled for September 22, 2026, through video conferencing. The Board approved significant leadership changes effective October 2026, including the re-designation of Rashesh C. Gogri as Managing Director and Hetal Gogri Gala from Managing Director to Whole-time Director. Rajendra V. Gogri will retire and not seek re-appointment.

Sustainability and Compliance

The company maintained its EcoVadis Gold rating (top 5% globally) and SBTi-approved emission reduction targets of 37.8% reduction in Scope 1 & 2 emissions by FY30. CSR expenditure was ₹5.65 Crores (0.59% of average net profit) focused on education, healthcare, and environmental projects. All statutory compliances were maintained with no material orders passed by regulators impacting going concern status.