Conference Call with Aarti Drugs Management and Analysts on Q2FY26 Performance and Outlook. Listen to the full earnings transcript.
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