Aarti Pharmalabs Limited (APL) submitted its Q1 FY27 Results Presentation to BSE Limited and National Stock Exchange of India Limited pursuant to Regulation 30 of SEBI (LODR) Regulations 2015. The presentation was also uploaded on the company's website.

Financial Performance (Standalone)

Q1 FY27 Results:

  • Operational Revenue: ₹5,346 Mn, up 42.4% YoY from Q1 FY26 (₹3,753 Mn) but down 7.8% QoQ from Q4 FY26 (₹5,797 Mn)
  • Operating Expenses: ₹4,019 Mn, up 43.4% YoY
  • EBITDA: ₹1,327 Mn, up 39.5% YoY
  • EBITDA Margin: 24.82%, decreased 52 bps YoY but improved 169 bps QoQ
  • PAT: ₹713 Mn, up 49.2% YoY
  • PAT Margin: 13.34%, improved 60 bps YoY and 264 bps QoQ
  • Diluted EPS: ₹7.86, up 49.1% YoY
  • Finance Costs: ₹129 Mn, up 89.7% YoY
  • Foreign Exchange Gain: ₹35 Mn (compared to loss of ₹38 Mn in Q1 FY26)
  • Tax Expense: ₹249 Mn, up 69.4% YoY

Financial Performance (Consolidated)

Q1 FY27 Results:

  • Operational Revenue: ₹5,358 Mn, up 38.7% YoY
  • EBITDA: ₹1,326 Mn, up 39.3% YoY
  • EBITDA Margin: 24.75%
  • PAT: ₹761 Mn, up 65.4% YoY
  • PAT Margin: 14.20%, improved 229 bps YoY
  • Diluted EPS: ₹8.39, up 65.2% YoY
  • Share of Joint Venture: ₹74 Mn gain

Operational Highlights

Manufacturing Capabilities:

  • 25+ years of pharmaceutical manufacturing experience
  • World's third-largest and India's largest manufacturer of Xanthine Derivatives with 9,600+ MTPA capacity
  • Capacity expansion from 5,000 MTPA to 9,600+ MTPA with phased ramp-up underway till FY27 end
  • Expected global market share increase from 15-20% to 20-25%
  • Non-Chinese dependent and fully backward integrated manufacturer

Regulatory Certifications:

  • Multiple USFDA approvals across manufacturing units (latest Jun 2022, Sep 2009, Aug 2017, Mar 2008, Sep 2011, Mar 2015, Dec 2016, Feb 2020)
  • EU GMP approvals (Apr 2008, May 2012, Aug 2013, Jan 2015)
  • EDQM approval (Sep 2019)
  • KFDA approval (Nov 2017)
  • COFEPRIS approval (Apr 2017, May 2017)

Manufacturing Facilities:

  • Dombivali - Unit I (API, Intermediates, CDMO)
  • Vapi - Unit II (API, Intermediates, CDMO), Custom Synthesis Division
  • Tarapur - Unit III (Xanthine Unit), Unit IV (API, CDMO-API), Unit V (Xanthine Unit), Unit VI (Intermediate unit)
  • Atali - Atali Unit (Intermediates, CDMO)
  • Total 1,500+ KL multipurpose reactor capacity (fungible) and 14 API finished lines

Business Segments Performance

Xanthine Derivatives & Allied Products:

  • Geographical Sales Split (Q1-FY27): Beverages 74%, Other 26%
  • Sales Quantity Split: Not quantified in disclosure

API & Intermediates:

  • Geographical Sales Split (Q1-FY27): International 48%, Domestic 52%
  • Market Segmentation: Specialized in HPAPIs for oncology, corticosteroids, and cytotoxic medicines

CDMO & CMO Services:

  • Working with 22 customers on 57 active projects (37 commercial, 20 development stage)
  • Experienced in complex chemistries including cyanation, flow chemistry, nucleotides
  • Expanding on-ground sales presence to USA and EU

Operational Challenges

  • Q1FY27 production at Unit 4 Steroid API Block was temporarily impacted by 6-week debottlenecking shutdown, which successfully unlocked one-third capacity increase
  • Geopolitical tensions kept raw material prices at elevated levels, though early indications of supply chain easing are visible

Capital Expenditure Update

Brownfield Capex - Atali Block 2:

  • Site: Unit 7, Atali, Gujarat
  • Estimated Investment: ₹149 crores
  • Estimated Capacity: ~405 KL
  • Timeline: Commercialization by H2FY28
  • Product Focus: CDMO/CMO
  • Strategic Rationale: Dedicated for certain CDMO/CMO projects ensuring supply continuity to large pharma customers with cost-effective design for better payback

Future Capex Outlook:

  • FY26 CAPEX: ~₹400 Cr
  • FY27 Outlook: Expected at similar levels (~₹400 Cr)
  • Initiating R&D investment in FY27 towards TIDES (Peptides & Oligonucleotides) to expand portfolio capabilities
  • Groundbreaking for Atali Block 2 planned in Q3FY27

Future Outlook

  • Targeting 15-18% Revenue & EBITDA CAGR over the next 3-4 years

Historical Financial Performance

Standalone (FY24-FY26):

  • Revenue: FY24 ₹15,021 Mn, FY25 ₹17,714 Mn, FY26 ₹17,976 Mn
  • EBITDA Margin: FY24 23.04%, FY25 24.08%, FY26 22.59%
  • PAT: FY24 ₹2,007 Mn, FY25 ₹2,573 Mn, FY26 ₹1,762 Mn

Consolidated (FY24-FY26):

  • Revenue: FY24 ₹18,526 Mn, FY25 ₹21,151 Mn, FY26 ₹18,194 Mn
  • EBITDA Margin: FY24 20.84%, FY25 21.96%, FY26 22.12%
  • PAT: FY24 ₹2,169 Mn, FY25 ₹2,724 Mn, FY26 ₹1,747 Mn

Balance Sheet Highlights (Standalone)

FY26 Position:

  • Total Assets: ₹33,277 Mn
  • Property, plant and equipment: ₹13,359 Mn
  • Capital work-in-progress: ₹3,052 Mn
  • Inventories: ₹6,362 Mn
  • Trade receivables: ₹5,866 Mn
  • Cash and cash equivalents: ₹55 Mn
  • Total Equity: ₹19,823 Mn
  • Borrowings: ₹6,856 Mn (Current ₹4,998 Mn + Non-current ₹1,858 Mn)

Capital Market Information (as on June 30, 2026)

  • Face Value: ₹5.00
  • Market Price: ₹681.15
  • 52 Week H/L: ₹971.50/₹583.85
  • Market Cap: ₹61,751.53 Mn
  • Equity Shares Outstanding: 90.66 Mn
  • 1 Year Avg Trading Volume: 267.71 ('000)

Shareholding Pattern (as on June 30, 2026)

  • Promoters: 42.86%
  • FII: 8.17%
  • DII: 7.22%
  • Public: 41.75%